Source · Select Committees · Work and Pensions Committee
Recommendation 7
7
Rejected
Paragraph: 29
The Housing Support Fund was designed to be a short-term measure but is now in...
Recommendation
The Housing Support Fund was designed to be a short-term measure but is now in its third funding cycle. While we all hope to see far more stability in the economy in coming years, the need for such funds highlights that benefits are already set at subsistence levels for most, leaving no capacity for individuals to cope with short term shocks. A more responsive uprating system would help to address this. We recommend that, by the end of this Parliament, the Government review the adequacy of benefit levels and publish its findings. This should include a specific review of the adequacy of disability benefits and should consider whether it is appropriate to continue to rely on discretionary funds and one-off payments.
Government Response Summary
The Government does not intend to conduct a specific review into the adequacy of benefit levels, stating there is no objective way of deciding what an adequate level of benefit should be.
Paragraph Reference:
29
Government Response
Rejected
HM Government
Rejected
The Government does not intend to conduct a specific review into the adequacy of benefit levels. There is no objective way of deciding what an adequate level of benefit should be as everyone has different requirements, and beneficiaries are free to spend their benefit as they see fit, in the light of their individual commitments, needs and preferences. Similarly extra costs disability benefits are intended to provide a broad contribution to additional costs faced by disabled people and individuals then have the choice and flexibility to prioritise according to their own needs. It was right that the Government took a wide-ranging approach to the support that it offered to help the most vulnerable in society through the Pandemic and this period of global high inflation, which included utilising both the mainstream benefit system and discretionary support. In the autumn, the Secretary of State will undertake her statutory annual up-rating review of benefits and pensions. If certain benefits have not kept pace with inflation, she may increase them if she considers it appropriate, having regard to the national economic situation and any other relevant matters, by such percentage as she thinks fit. Local Authorities in England are already funded through the local government finance settlement, on a non-ring-fenced basis, to deliver local welfare provision using their existing powers, should they wish to do so.