Select Committee · Work and Pensions Committee

Cost of living support payments

Status: Closed Opened: 3 Apr 2023 Closed: 28 Feb 2024 10 recommendations 5 conclusions 1 report

The Work and Pensions Select Committee is conducting an inquiry looking into the Government’s cost of living support packages for 2022–23 and 2023–24. Individuals, researchers and organisations with a view of the terms of reference are welcome to submit evidence to the Committee. When introducing the newest cost of living support payments for Spring 2023, …

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Reports

1 report
Title HC No. Published Items Response
First Report - Cost of Living Support Payments HC 143 14 Nov 2023 15 Responded

Recommendations & Conclusions

5 items
1 Conclusion First Report - Cost of Living Support P… Accepted

Automated payment system provides swift support but is limited in targeting specific group needs.

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

Cost of living payment eligibility creates an unfair "cliff edge" income gap.

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
7 Conclusion First Report - Cost of Living Support P… Accepted

Household Support Fund provides uneven support and suffers from low awareness.

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

Maintain Household Support Fund, improve communication and application accessibility for vulnerable groups.

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
11 Recommendation First Report - Cost of Living Support P… Accepted

Devise and implement policy addressing unfairness for low-income pensioners missing Pension Credit.

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

Oral evidence sessions

2 sessions
Date Witnesses
5 Jul 2023 Dr Jennifer Robson · Kroeger College, Carleton University (Canada), Dr Miroslav Štefánik · Institute of Economic Research Slovak Academy of Sciences, Katy Roberts · Department for Work and Pensions, Mims Davies MP · Department for Work and Pensions, Nagesh Reddy · Department for Work and Pensions, Neil Couling · Department for Work and Pensions, Professor Thomas Gerlinger · Bielefeld University (Germany) View ↗
7 Jun 2023 Fran Bennett · University of Oxford, Helen Barnard · The Trussell Trust, Maddy Rose · Royal Mencap Society, Maxwell Marlow · Adam Smith Institute, Morgan Wild · Citizens Advice, Richard Hunt · Leicestershire County Council, Sally West · Age UK View ↗

Correspondence

1 letter
DateDirectionTitle
21 Feb 2024 Correspondence with the Minister for Employment relating to Cost of living supp…