<-- Back to proposed bills
Cost of Living Payments and the Welfare Cap
23 June 2022
Type
Written Ministerial Statement
Department
Treasury
At a Glance
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.
▸
Assessment & feedback
Summary accuracy