Commons Sense

House of Commons · Ministers' Questions

Increased Living Costs: Benefit Claimants

Monday 13 December 2021 · 7 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 7 Not answered 0

Key points

  • Government reduced the universal credit taper rate and increased the work allowance to help low-income households.
  • The household support fund was introduced, providing 500 million for local authorities to assist households facing increased living costs.
  • The Government froze the local housing allowance, despite rising rents, but increased LHA rates to the 30th percentile of local rents in April 2020.

Topics (select to filter)

Questions & Answers

Q1 Daniel Zeichner Lab Cambridge
Benefits & Welfare
Context

Increased living costs are putting pressure on households claiming benefits.

Question

What steps her Department is taking to support benefit claimants in meeting increased living costs. I am concerned about the impact of rising costs on those who rely on universal credit and other benefits.

Answer from David Rutley

The Government are taking action to make work pay for low-income households. We are reducing the universal credit taper rate and increasing the work allowance so that working people can keep more of their earnings. A £500-million household support fund has been introduced for local authorities to help those on the lowest incomes with food and utility costs.

Partly answered

Not addressed: Did not address how specific individuals or groups are impacted by increased living costs.

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Q2 Rachel Hopkins Lab Luton South and South Bedfordshire
Economy Benefits & Welfare
Context

1 in 10 households are struggling with a £5 per month increase in living costs.

Question

Does the Minister accept that his Government's failure to tackle increasing rents and energy costs will impact the poorest in society more and push more of my constituents into poverty? About 12,000 households in Luton South are claiming universal credit.

Answer from David Rutley

The hon. Member will welcome the fact that the vast majority of the nearly 6,000 claimants in work will gain from the reduction in the taper rate and the increase in work allowances in the Budget. £1.8 million has been made available to local authorities through the household support fund.

Partly answered

Not addressed: Did not address rising rents or energy costs directly, only mentioned the household support fund.

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Q3 Stephen Timms Lab East Ham
Benefits & Welfare
Context

A single father is struggling to afford basic necessities due to reduced benefits.

Question

With prices rising, is not the social security safety net just too low? A single father who cannot work due to health issues told the Select Committee that he had to skip meals so his children could eat. He now cannot afford food, heating or transport and cannot buy Christmas presents for his children.

Answer from David Rutley

We have introduced the household support fund. In Newham, £3.3 million is available for those facing challenges this winter.

Partly answered

Not addressed: Did not address whether the safety net covers basic living costs or if a review will take place.

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Q4 Kate Hollern Lab
Economy Energy Benefits & Welfare
Context

The household support fund is replacing the £20 a week uplift in universal credit.

Question

In effect, the new household support scheme replaces the £20 universal credit uplift with £1.60. Can the Minister tell me how that will help families through this harsh winter? Over 16% of families in Blackburn live in fuel poverty and face higher fuel prices due to rising costs.

Answer from David Rutley

Steps are in place for those in work, out of work or vulnerable. The universal credit taper and work allowance help those employed. The plan for jobs helps unemployed people find employment. For the vulnerable, there is the household support fund with £1.6 million available in Blackburn and Darwen this winter.

Partly answered

Not addressed: Did not specify how the scheme will replace the uplift effectively or address fuel poverty directly.

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Q5 Daniel Zeichner Lab Cambridge
Economy Benefits & Welfare Environment
Context

Food costs are increasing, affecting households claiming benefits and those in work.

Question

Everyone knows that costs are rising dramatically. We see price rises in shops already. The Food and Drink Federation estimates a £3 weekly increase for households. With the £5 mentioned earlier, does the Minister understand just what pressure this puts on vulnerable households? What will the Government do to protect them when these price rises hit?

Answer from David Rutley

It is important that we get more people into work, with 1.3 million vacancies available. We help unemployed individuals enter employment which will be sustainable in getting them on their own feet. The household support fund in Cambridgeshire amounts to £3.6 million to assist the vulnerable.

Partly answered

Not addressed: Did not address rising food prices specifically or propose measures beyond job creation and existing funds.

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Q6 Karen Buck Lab
Housing Benefits & Welfare
Context

The Government have frozen the local housing allowance despite rising rents and a shortfall in support for renters.

Question

With housing costs driving poverty, why did the Government decide to freeze the local housing allowance? Millions of renters are affected by this decision. Rents are increasing while support remains unchanged.

Answer from David Rutley

We increased LHA rates to 30th percentile of local rents in April 2020, a boost of £1 billion providing an average gain of £600 per person. We maintained these at cash levels and offer discretionary housing payments for those needing extra help.

Partly answered

Not addressed: Did not address the decision-making process or assessment impact on household incomes from freezing LHA rates.

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Q7 Philip Hollobone Con
Benefits & Welfare
Context

1 million pensioners are not claiming the pension credit to which they are entitled.

Question

To help pensioners with rising household bills, will the Government do more to promote pension credit? In Kettering, almost 18,000 retired people claim state pensions but fewer than 2,000 claim pension credit. Pension credit can assist with council tax, heating costs and other expenses.

Answer from David Rutley

My hon. Friend is a strong advocate on these issues. We have a dedicated Pensions Minister working hard to increase take-up. Winter fuel payments and cold weather payments are also available for those on low incomes over winter.

Partly answered

Not addressed: Did not confirm specific plans or actions being taken by the Government to promote pension credit uptake.

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