Commons Sense

House of Commons · Ministers' Questions

In-work Poverty: Cost of Living

Monday 6 June 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 1 Partly answered 1 Not answered 0

Key points

  • The government has taken action to make work pay by increasing universal credit and raising the national living wage.
  • People can choose to receive universal credit payments earlier, spreading them over 13 months instead of 12.
  • Statutory maternity pay and maternity allowance are treated differently due to their distinct eligibility criteria.

Topics (select to filter)

Questions & Answers

Q1 Kirsten Oswald SNP
Economy Employment Benefits & Welfare
Context

The question arises from discussions on addressing in-work poverty amidst rising cost of living.

Question

What discussions has the government had with Cabinet colleagues on steps to tackle in-work poverty in light of the increasing cost of living?

Answer from Therese Coffey

This Government have taken decisive action to make work pay, giving 1.7 million families an extra £1,000 per year, on average, through changes to the universal credit taper, work allowances, and increasing the national living wage to £9.50 an hour.

Answered
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Q2 Chris Stephens SNP
Benefits & Welfare
Context

The question stems from a discussion on grants being preferable to loans for financial assistance, extending the principle to universal credit advance payments.

Question

Now that grants are preferred over loans for financial support, will the Secretary of State apply this principle to universal credit advance payments as recommended by the Work and Pensions Committee?

Answer from Therese Coffey

People can choose to get an extra payment of universal credit earlier, spreading it over the entire year, so they effectively receive 13 payments instead of 12. For those moving from legacy benefits, run-ons of different benefits are provided to help with cash transition.

Partly answered

Not addressed: Applying grants principle to universal credit advance payments

How: Discussed Similar Topic Earlier

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Q3 Kirsten Oswald SNP
Benefits & Welfare
Context

The issue pertains to the financial disadvantage faced by claimants excluded from statutory maternity pay due to arbitrary rules, who rely on maternity allowance offset against universal credit.

Question

Having a child is one of the tipping points that can plunge families into poverty. Each year thousands of claimants are excluded from statutory maternity pay due to arbitrary rules, forcing them to rely on lower maternity allowance and being worse off than those receiving statutory maternity pay. When will the UK Government address this injustice?

Answer from Therese Coffey

The two benefits are different, reflecting distinct situations; thus, they will be treated differently. The claimant challenged this in court but lost, as the court recognised them as separate benefits.

Not addressed: Addressing disparity between statutory maternity pay and maternity allowance

How: Challenged In Court, Different Situations

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