Context
The MP notes that while the government provides significant cost of living support to households on means-tested benefits, these benefits can be completely lost if a claimant earns £1 more. This creates a disincentive for people to take on extra work.
Question
What steps his Department is taking to help claimants in receipt of means-tested benefits with increases in the cost of living. If someone is on one of those means-tested benefits and they earn £1 more, they have the potential to lose the full payment. I wonder if the Minister has noticed any change in people's behaviour as a result of that disincentive to take on extra work.
Answer from Mims Davies
It is vital that those on low incomes, or indeed those who are keen to work more, see the incentives. In the spring Budget, we announced an ambitious package of measures to support people to take up work and, importantly, to progress by making sure that they are always better off. We are also supporting them with a significant investment in childcare and, of course, the largest ever cash increase to the national living wage, taking it up to £10.42. I would say to those people that they should look at the benefits calculator on gov.uk, because they will always be better off in work.
Not addressed: No data or observations about changes in behavior due to the disincentive were provided.
How: Looking At The Incentives For People, Announced Measures To Support Taking Up Work
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