Commons Sense

House of Commons · Ministers' Questions

Lowest Incomes: Support

Tuesday 8 April 2025 · 3 questions

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

At a glance

Answered 0 Partly answered 2 Not answered 0

Key points

  • Ms Diane Abbott questioned the Minister about steps to support people on the lowest incomes following the spring statement 2025.
  • Ze Franklin highlighted the issue of low-income individuals in debt, noting that universal credit is insufficient to prevent them from accruing debt again after paying it off.
  • Mr James Wild criticized the Chancellor's policies, stating they would result in lower wages, higher prices, and higher business rates, affecting hospitality and retail businesses.

Topics (select to filter)

Questions & Answers

Q1 Diane Abbott Lab Hackney North and Stoke Newington
Context

Following the spring statement in 2025, Ms Abbott questions the government's approach to supporting individuals with low incomes.

Question

What steps she is taking with Cabinet colleagues to support people on the lowest incomes following the spring statement 2025. It is all very well for the Minister to talk about helping people into work, but is he aware of the many millions of people on personal independence payments who rely on them in order to work? Yet that PIP will be slashed as a consequence of the spring statement. Is he also aware that very many people would prefer the Government not to balance their books on the backs of some of the poorest and most vulnerable people in our society? Why are the Government rejecting a tax of just 2% on people with assets of over £10 million, which would raise over £24 billion?

Answer from James Murray (Exchequer Secretary to the Treasury)

At the autumn Budget last year, the Chancellor announced a series of reforms to fix the public finances in as fair a way as possible, and make sure that the wealthiest in society pay their share of tax. The welfare reforms announced in the spring statement are principled reforms to help get people back into work, because work is the best way out of poverty. The reforms also provide support for those who need it and make sure that the system is sustainable for the future.

Partly answered

Not addressed: The MP's specific ask about a wealth tax on assets over £10 million was not addressed.

How: Principled Reforms, Public Finances In As Fair A Way

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Context

Local Christians Against Poverty debt support team reported that many low-income individuals in Guildford struggle to stay out of debt due to insufficient universal credit, exacerbated by the high cost of living.

Question

Earlier this year, I spoke to members of my local Christians Against Poverty debt support team in Guildford, and they explained to me that they support many low-income individuals out of debt, but they are no sooner out of debt than they start accruing it again, because universal credit is insufficient to cover their basic needs due to the cost of living in areas such as Guildford. What work has the Minister done to assess whether universal credit levels are sufficient to cover the varied and increasing basic living costs across the country, and to prevent people on the lowest incomes from getting further into difficulty and debt?

Answer from James Murray (Exchequer Secretary to the Treasury)

The Government have already taken action on the fair repayment rate, lowering the cap on deductions from universal credit to 15%—it was 25% before the autumn Budget last year. That will benefit 1.2 million households by an average of £420 a year, and 700,000 of the poorest families with children will benefit.

Partly answered

Not addressed: The MP's specific ask about universal credit levels sufficiency in high-cost areas was not directly addressed.

How: Fair Repayment Rate, Benefit To 1.2 Million Households

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Q3 James Wild Con North West Norfolk
Context

The Chancellor's decision to impose a £25 billion jobs tax has resulted in significant financial burdens for working families and businesses, particularly in the hospitality and retail sectors.

Question

Businesses have just been hit by the Chancellor’s £25 billion jobs tax, which will cost working families £3,500; also, business rates are nearly doubling for hospitality and retail businesses. How does imposing taxes that the Office for Budget Responsibility says will result in lower wages, higher prices and fewer jobs help growth and those on the lowest incomes, and will the Chancellor keep her promise not to come back with more taxes in this Parliament?

Answer from James Murray (Exchequer Secretary to the Treasury)

The shadow Minister talks about business rates support. I remind him that if we had carried on with the plans inherited from the Conservative party, business rates relief would have ended entirely this month. It is only thanks to a decision of this Government that rates relief is continuing for this year, ahead of permanent reforms that will permanently lower tax rates for retail, hospitality and leisure premises on the high street from April 2026. That is thanks to a decision this Government made.

Not addressed: The MP's specific ask about impact of taxes on growth and job creation was not addressed.

How: Reminding About Conservative Party Plans, Permanent Reforms

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