Recommendations & Conclusions
3 items
1
Conclusion
Second Report - The Cost of Living
Acknowledged
The Committee welcomes the Government’s swift action and range of measures introduced in response to the cost of living crisis. It is clear that these will offset some of the increased costs for households living in poverty. However, we have heard very concerning evidence about the impact of the crisis …
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The Committee welcomes the Government’s swift action and range of measures introduced in response to the cost of living crisis. It is clear that these will offset some of the increased costs for households living in poverty. However, we have heard very concerning evidence about the impact of the crisis on disabled people, older people, carers and larger families in particular.
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Government response AI summary
The government acknowledges the impact of the cost of living crisis on specific vulnerable groups and describes its communication efforts to ensure people receive their full benefit entitlements, including the Help for Households campaign and a dedicated online hub.
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Department for Work and Pensions
8
Recommendation
Second Report - The Cost of Living
Acknowledged
The reset of Local Housing Allowance to cover the 30th percentile of rents was a welcome intervention at the start of the COVID-19 pandemic, but the increase has since been eroded by rising housing costs. Some parts of the country are experiencing acute shortages of affordable housing, and we have …
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The reset of Local Housing Allowance to cover the 30th percentile of rents was a welcome intervention at the start of the COVID-19 pandemic, but the increase has since been eroded by rising housing costs. Some parts of the country are experiencing acute shortages of affordable housing, and we have heard this is leaving some unable to move on from temporary accommodation. DWP should work with other Departments to make housing more affordable for those on low incomes, as it did in 2020. This must include an increase to Local Housing Allowance to ensure that it supports people on low incomes to access secure, affordable housing in their local area. (Paragraph 31) Benefit cap
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Government response AI summary
The government describes measures to improve access to home ownership and states that LHA rates are not intended to cover all rents in all areas and are forecast to continue at their current level through to 2025-26, but this will be reviewed annually.
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Department for Work and Pensions
9
Recommendation
Second Report - The Cost of Living
Acknowledged
We welcome the decision by the Government to exempt the cost of living payments from the benefit cap so that those most in need of support can receive it. This decision suggests, however, that the Department knows that the cap is set too low to effectively cover households’ now spiralling …
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We welcome the decision by the Government to exempt the cost of living payments from the benefit cap so that those most in need of support can receive it. This decision suggests, however, that the Department knows that the cap is set too low to effectively cover households’ now spiralling costs of living. Regardless of the changes made when the Fixed Term Parliaments Act was repealed, it was clearly not the intention of the original legislation that the benefit cap go more than six years without even being reviewed, let alone adjusted for inflation. The benefit cap should be reviewed urgently—and certainly no later than the end of 2022—to ensure it is in line with average household incomes and increasing rent/energy/food costs—the results of this review should be published. Furthermore, the cap must be uprated this year. (Paragraph 39) Deductions
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Government response AI summary
The government acknowledges the recommendation for reviewing the benefit cap and states that the Secretary of State is reviewing further advice on this.
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Department for Work and Pensions