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Autumn 2022 Fiscal Events

Closed Opened 4 Oct 2022 Closed 21 Jun 2023 1 recommendation 3 conclusions

Treasury Committee Inquiry on parliament.uk ↗

Where it stands

The inquiry is closed, opened 4 October 2022.

The committee has published 1 report, most recently Eighth Report - Autumn Statement 2022 – Cost of living payments on 14 December 2022.

The government's response

Published 27 February 2023. The deadline was 14 February 2023.

Summary written by Accountability Index from the government's response. It is not the government's own words.

The Government declines to adopt the Committee's recommendation to mirror the Energy Bill Support Scheme payments model, while setting out that it has already moved to three means-tested Cost of Living Payments in 2023-24 and provides existing analysis in place of some further analysis requested.

  • On more payments, the Government says it "did consider" more lump sums and announced on 3 January 2023 that the £900 payment for means-tested benefit claimants will be delivered in three payments (Spring 2023, Autumn 2023 and Spring 2024).
  • It does not accept monthly payments, saying DWP's 'Ad Hoc Payment System' makes it "not possible" to pay monthly for six months "without compromising delivery of DWP’s core benefits".
  • On analysis of the Household Support Fund's impact, it says this is "not possible" in the distributional analysis because Management Information lacks sufficient detail, but HM Treasury "will consider what data becomes available" as a matter of routine.
  • On work incentives, it says qualifying dates will be announced after they have passed, to "deter fraud and to mitigate risks to work incentives", and that a taper would be "extremely complex and potentially costly".

Read the government's response ↗ Report an error

Recommendations and conclusions

All 4 recommendations and conclusions

Reports

All reports

Evidence

  • 6 oral evidence sessionsLatest 23 November 2022
  • 20 witnesses
All evidence

Recent activity

Recommendations and conclusions 4 shown

Conclusion 2

Conclusion · Eighth Report - Autumn Statement 2022 – Cost of living payments · Addressed to HM Treasury

Concluded (the committee's words)
The Government provision of additional support to those on low incomes through one-off payments presents a problem of cliff-edges to that support. If someone doesn’t match the criteria required of the means-tested benefits, both in terms of income and the time they are being assessed for eligibility, they will not receive this significant lump sum support when a very similar household may do so. That appears unfair. It may also create a disincentive to work, as it may be in someone’s interests to reduce their hours at key periods to ensure their eligibility for the benefit at the required time.

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Recommendation 3

Recommendation · Eighth Report - Autumn Statement 2022 – Cost of living payments · Addressed to HM Treasury

Recommended (the committee's words)
We recommend that the Government consider a greater number of lump-sum payments than the two in 2022–23, which would better ensure that more households have support at the time of their greatest need, and would reduce the severity of the disincentives to work within each relevant assessment period. We recommend mirroring the payments model used in the Energy Bill Support Scheme—a payment each month for six months—which provided regular help over the colder winter period.

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Conclusion 4

Conclusion · Eighth Report - Autumn Statement 2022 – Cost of living payments · Addressed to HM Treasury

Concluded (the committee's words)
We would also welcome analysis from the Treasury of: • the work disincentive effects of different sizes and frequencies of lump sum payments, and • whether a taper might better incentivise work as part of any subsequent payments from 2024–25.

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Conclusion 5

Conclusion · Eighth Report - Autumn Statement 2022 – Cost of living payments · Addressed to HM Treasury

Concluded (the committee's words)
Cliff-edges remain present elsewhere. Certain income levels also attract unusually high marginal tax rates or the loss of means-tested entitlements. Such features are distortionary. The Treasury should endeavour to smooth them wherever possible, in areas of its own responsibility, and when considering funding requests from departments. We will return to this issue in future.

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Reports

1 report

Oral evidence sessions

6 sessions

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Date Session and witnesses Source
23 Nov 2022
Oral evidence session
Dan York-Smith · HM Treasury, Rt Hon Jeremy Hunt MP · HM Treasury 		View ↗
22 Nov 2022
Oral evidence session
Andy King · Office for Budget Responsibility, Professor David Miles CBE · Office for Budget Responsibility, Richard Hughes · Office for Budget Responsibility 		View ↗
21 Nov 2022
Oral evidence session
Carl Emmerson · Institute of Fiscal Studies, Dr Linda Yueh · Oxford University, Mike Brewer · Resolution Foundation, Samuel Tombs · Pantheon Economics 		View ↗
26 Oct 2022
Oral evidence session
Jessica Pulay · Debt Management Office, Jim Juffs · Debt Management Office, Sir Robert Stheeman · Debt Management Office 		View ↗
19 Oct 2022
Oral evidence session
Andrew Hauser · Bank of England, David Roberts · Bank of England, Sarah Breeden · Bank of England, Sir Jon Cunliffe · Bank of England 		View ↗
12 Oct 2022
Oral evidence session
Dr Gemma Tetlow · Institute for Government, Paul Johnson · Institute for Fiscal Studies, Professor Jagjit S. Chadha · National Institute of Economic and Social Research (NIESR), Torsten Bell · Resolution Foundation 		View ↗

Who gave evidence

20 witnesses

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WitnessOrganisationSessions
Andrew Hauser · Executive Director, Markets Bank of England 1
Andy King · Member of the Budget Responsibility Committee Office for Budget Responsibility 1
Carl Emmerson · Member, and Deputy Director Institute of Fiscal Studies 1
Dan York-Smith · Director General, Tax and Welfare HM Treasury 1
David Roberts · Chair of the Court of Directors Bank of England 1
Dr Gemma Tetlow · Chief Economist Institute for Government 1
Dr Linda Yueh · Fellow, St Edmund Hall Oxford University 1
Jessica Pulay · Chief Executive Officer Debt Management Office 1
Jim Juffs · Chief Operating Officer Debt Management Office 1
Mike Brewer · Deputy Chief Executive Resolution Foundation 1
Paul Johnson · Director Institute for Fiscal Studies 1
Professor David Miles CBE · Member, Budget Responsibility Committee Office for Budget Responsibility 1
Professor Jagjit S. Chadha · Director National Institute of Economic and Social Research (NIESR) 1
Richard Hughes · Chair Office for Budget Responsibility 1
Rt Hon Jeremy Hunt MP · Chancellor of the Exchequer HM Treasury 1
Samuel Tombs · Chief UK Economist Pantheon Economics 1
Sarah Breeden · Deputy Governor for Financial Stability Bank of England 1
Sir Jon Cunliffe · Deputy Governor for Financial Stability Bank of England 1
Sir Robert Stheeman · Chief Executive Debt Management Office 1
Torsten Bell · Chief Executive Resolution Foundation 1

Correspondence

10 letters

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PublishedDirectionLetter
12 Dec 2022 Not recorded Correspondence from the Chancellor of the Exchequer, relating to the session on ‘Autumn 2022 Fiscal Events’ on 23 November, dated 12 December
30 Nov 2022 Not recorded Correspondence from the Debt Management Office, relating to the ‘Autumn 2022 Fiscal Events’ inquiry, dated 14 November
14 Nov 2022 To committee Letter from the Chancellor of the Exchequer - New date of the Autumn Statement
26 Oct 2022 Not recorded Correspondence from the Interim Chair to the Chancellor of the Exchequer, relating to the Autumn Statement and the Office for Budget Responsibility forecasts, dated 26 October
26 Oct 2022 Not recorded Correspondence from the Chancellor of the Exchequer, relating to the Autumn Statement and the Office for Budget Responsibility forecasts, dated 26 October
10 Oct 2022 Not recorded Correspondence from the Chancellor of the Exchequer, relating to Office for Budget Responsibility forecasts and the Medium-Term Fiscal Plan, dated 10 October
30 Sep 2022 To committee Letter from the Chancellor of the Exechequer, relating to Office for Budget Responsibility forecasts, dated 26 September
30 Sep 2022 To committee Letter from the Chancellor of the Exchequer, relating to the notification of amendment to the indemnity for the Bank’s Asset Purchase Facility, dated 28 September
30 Sep 2022 To committee Letter from the National Institute of Economic and Social Research, relating to monetary and fiscal cooperation, dated 27 September 2022
30 Sep 2022 To committee Letter from the Office for Budget Responsibility, relating to the autumn forecast timetable, dated 29 September 2022