Recommendations & Conclusions
15 items
1
Conclusion
First Report - Cost of Living Support P…
Accepted
We welcome the automated nature of the payment system, which enabled the swift issue of cash support to many of those most in need. However, we recognise that it is limited in its ability to target payments and therefore meet the additional needs of certain groups.
Government response. The government defends its existing automated payment system as quick and effective, highlighting millions of payments made, annual benefit upratings, and existing targeted payments for disabled people and pensioners.
Department for Work and Pensions
2
Conclusion
First Report - Cost of Living Support P…
Accepted
We are concerned by the cliff edge nature of the cost of living payments which creates a fundamentally unfair income gap where a person is financially penalised for earning just over the qualifying threshold, being in receipt of a sanction or not receiving an eligible payment during the qualifying period. …
Government response. The government acknowledges the cliff-edge issue but states that delivering payments in three separate instalments reduces the chance of missing out, and highlights the flexible Household Support Fund as an alternative for those ineligible.
Department for Work and Pensions
3
Conclusion
First Report - Cost of Living Support P…
Deferred
People who receive Universal Credit and are paid on a non-monthly basis, even if their earnings follow a consistent pattern, can fail to meet the eligibility criteria in a qualifying period. We recognise that the Government has taken steps to mitigate the risk of an individual missing more than one …
Government response. The government defers its response to this recommendation, stating it will be taken in conjunction with recommendation 4.
Department for Work and Pensions
4
Recommendation
First Report - Cost of Living Support P…
Rejected
The Government should change the eligibility for the final cost of living payment in 2023/24 and for any possible future payments so that Universal Credit (UC) claimants who receive a nil UC award in the qualifying period, but received a payment in the previous and subsequent assessment period, qualify for …
Government response. The government rejects changing eligibility for nil-award Universal Credit claimants, citing that substantial changes would introduce complexity, risk delays, fraud, or error, and that DWP IT systems cannot distinguish reasons for nil awards.
Department for Work and Pensions
5
Recommendation
First Report - Cost of Living Support P…
Rejected
We are concerned that support payments do not reach all low-income households in receipt of benefits as some households only receive housing benefit. The Government should consider adding Housing Benefit as a qualifying benefit for future cost of living support payments and set out the practicalities of doing so.
Government response. The government rejects adding Housing Benefit as a qualifying benefit, explaining it is not an income-replacement benefit and administrative complexities would prevent quick, accurate payment delivery, instead pointing to the Household Support Fund.
Department for Work and Pensions
6
Recommendation
First Report - Cost of Living Support P…
Rejected
We are concerned that some people with no recourse to public funds could be denied Household Support Fund (HSF) support from local authorities, despite potentially being eligible for such support, due to a lack of clarity in the guidance. We are also concerned that some people with no recourse to …
Government response. The government rejects clarifying Household Support Fund guidance for those with No Recourse to Public Funds, stating that local authorities already have powers for care needs and the variety of factors involved means a definitive list or explicit guidance would …
Department for Work and Pensions
7
Conclusion
First Report - Cost of Living Support P…
Accepted
The Household Support Fund has enabled the provision of support to vulnerable households who are not eligible for the cost of living support payments or for whom the payments are not sufficient. However, we are concerned by the uneven nature of support offered by the Household Support Fund which can …
Government response. The government defends the Household Support Fund's flexible design, stating it allows local authorities to respond to local need, and highlights current efforts like an Awareness Week, leaflets, and knowledge-sharing events to improve communication and accessibility.
Department for Work and Pensions
8
Recommendation
First Report - Cost of Living Support P…
Accepted
If the Government continues to issue cost of living support payments in the next financial year, it should maintain the Household Support Fund as it is an important safety net for those ineligible for these payments and other means tested benefits. In doing so, ahead of the next financial year, …
Government response. The government states the Household Support Fund (HSF) is under review for future years and highlights existing measures, such as local authorities being required to provide application-based schemes and comply with the Equality Act to ensure accessible advertising and support.
Department for Work and Pensions
9
Recommendation
First Report - Cost of Living Support P…
Rejected
The cost of living payments have had an important impact and boosted the finances of low-income households. However, one-off payments were not a sufficient response to the scale of the issue, and many people in receipt of the payments still could not meet essential costs or only had a temporary …
Government response. The government rejects bringing forward the full evaluation of Cost of Living Payments, stating it would compromise robustness, but confirms an evaluation is underway with fieldwork in early 2024 and early findings feeding into policy decisions.
Department for Work and Pensions
10
Recommendation
First Report - Cost of Living Support P…
Acknowledged
While the UK support has been relatively generous compared to other countries, other countries have issued specific support for families and children, which the UK Government has not. Given the flat rate nature of the cost of living payments, the Government should conduct an analysis of the value of the …
Government response. The government acknowledges that Cost of Living Payments were not proportional to family size but were simplified for quick delivery, and points to the ongoing evaluation of COLPs and the Household Support Fund as avenues for understanding support for families.
Department for Work and Pensions
11
Recommendation
First Report - Cost of Living Support P…
Accepted
We commend the Government’s efforts to promote Pension Credit to those entitled to it, though there is still more to do to increase take-up as we remarked on in our July 2022 Cost of Living report. We remain concerned that there are low-income pensioner households who may just miss out …
Government response. The government describes its ongoing substantial nationwide campaign to promote Pension Credit to those eligible but states its immediate focus remains on encouraging eligible individuals to claim it, without committing to a new policy for those who just miss out.
Department for Work and Pensions
12
Recommendation
First Report - Cost of Living Support P…
Deferred
The cost of living payments do not provide a suitable level of support for vulnerable groups who are impacted to a greater extent by the cost of living crisis, such as those with disabilities, and do not cover the additional costs these people face. 48 Cost of living support payments …
Government response. The government deflected the recommendation, stating it should be considered in conjunction with recommendation 13, without providing the requested detailed reasoning for the £150 disability payment.
Department for Work and Pensions
13
Recommendation
First Report - Cost of Living Support P…
Rejected
Should there be future cost of living payments, or similar ad hoc support, the Government should increase the financial support for those with disabilities in proportion to the additional costs that they incur.
Government response. The government rejected the recommendation for future disability cost of living payments to be proportional to additional costs, explaining its current approach prioritizes higher payments for those on means-tested benefits due to their vulnerability.
Department for Work and Pensions
14
Recommendation
First Report - Cost of Living Support P…
Rejected
It is clear that an uplift of regular working age benefits received would be more beneficial than ad-hoc cost of living support payments as it would better enable households to budget and reduce the chance of a recipient losing out on a major one-off payment. The Government have explained it …
Government response. The government rejected the recommendation to uprate Universal Credit separately and maintain one-off payments only for legacy benefits, citing the statutory annual review duty and the breach of equal treatment requirements if differentiated.
Department for Work and Pensions
15
Conclusion
First Report - Cost of Living Support P…
Rejected
We recognise that the Government is concerned that publishing exact payment windows could encourage fraud and disincentivise people from taking work opportunities. However, the irregular nature of these payments, along with the uncertainty of when they will be received, continues to make household budgeting a challenge. If the Government decides …
Government response. The government rejected the recommendation to announce future cost of living payment dates in advance, stating that doing so would implicitly reveal qualifying dates, which they aim to avoid to prevent fraud and maintain work incentives.
Department for Work and Pensions