Commons Sense

House of Commons · Written Ministerial Statement

Cost of Living Payments and the Welfare Cap

23 June 2022 · Treasury

Proposed by Rishi Sunak Con Richmond and Northallerton

Benefits & Welfare

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

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At a glance

Key points

  • The Cost of Living Payments are announced to be outside the scope of the welfare cap.
  • This decision is based on the temporary and exceptional nature of the payments.
  • The HM Treasury's obligations under the Charter for Budget Responsibility informed this categorisation.

Issue summary

The statement addresses whether the Cost of Living Payments fall within or outside the scope of the welfare cap.

Action requested

It is announced that the Cost of Living Payments, first announced on May 26th, 2022, are categorised as outside the scope of the welfare cap due to their temporary and exceptional nature. This decision was made in accordance with HM Treasury’s obligations under the Charter for Budget Responsibility.

Key facts

  • The Cost of Living Payments were first announced on May 26th, 2022.
  • The welfare cap is designed to manage predictable elements of benefit expenditure.
  • Benefits most directly linked to the economic cycle are categorised as outside the scope of the welfare cap.
  • The formal assessment for breaching the welfare cap will occur in 2024-25.
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