Commons Sense

House of Commons · Ministers' Questions

Cost of Living Increase: Universal Credit

Tuesday 15 March 2022 · 3 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 3 Not answered 0

Key points

  • CPI has been used as the default measure for benefits since 2011.
  • The Government is providing 20 billion support for families, including 9 billion for energy bills.
  • Significant funds are being allocated now to help families cope with rising costs.

Topics (select to filter)

Questions & Answers

Q1 Stephen Farry
Economy Benefits & Welfare
Context

With the cost of living increasing, millions of UK families are facing financial hardships. The current universal credit uprate is set at 3.1%, based on CPI in September 2021, while recent inflation exceeds 7%. Multiple organizations warn about severe impacts.

Question

What discussions has the Minister had with Cabinet colleagues regarding reviewing the universal credit inflationary uplift due to rising costs of living? Millions of families depend on benefits like Universal Credit. Recent inflation is over 7%, but the uprate was set at 3.1%. The Joseph Rowntree Foundation and Trussell Trust highlight real jeopardy for families facing cuts of over £500 annually.

Answer from Lucy Frazer

CPI has been used as the default measure for benefits since 2011. The Government is providing £20 billion support, including £9 billion for energy bills and a reduced taper rate allowing families to keep an additional £1,000 annually.

Partly answered

Not addressed: Did not directly address the need for reassessment of inflationary uplift

How: Cpi Has Been Used Since 2011, Providing Support Worth Over £20 Billion

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Q2 Stephen Farry
Economy Energy Benefits & Welfare
Context

With inflation at an all-time high and the current benefit uprates inadequate, families are struggling to make ends meet. The government's plan for winter support has been criticized as insufficient.

Question

Will the Minister reassess the 3.1% universal credit uplift given recent CPI increases? Families face real cuts of over £500 annually due to inflation exceeding 7%. Many families are already struggling with heating and food bills, making next winter a critical period.

Answer from Lucy Frazer

We have introduced measures such as £20 billion support for families. Energy prices are fixed until autumn, and significant funds are being allocated now.

Partly answered

Not addressed: Did not specify bringing forward the April increase to autumn

How: Introduced Range Of Measures, Energy Price Fixed Until Autumn

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Q3 Nigel Mills Con
Benefits & Welfare
Context

With the winter approaching and inflation high, many families are concerned about whether current support measures will be enough to cover heating and food expenses. The timing of benefit increases is crucial.

Question

Will the 3.1% uprate in Universal Credit next month suffice for families throughout winter? If there's recognition of a problem, will April's increase be brought forward to this autumn?

Answer from Lucy Frazer

We have measures in place like £20 billion support for families, energy prices fixed until autumn.

Partly answered

Not addressed: Did not explicitly state bringing forward the April increase to autumn

How: Range Of Measures Introduced, Energy Price Set Until Autumn

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