Select committee: Work and Pensions Committee

Recommendation 8

Second Report - The Cost of Living Published 27 Jul 2022 Paragraph 31 Addressed to Department for Work and Pensions
Recommendation (the committee's words)
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.

From: Work and Pensions Committee, Second Report - The Cost of Living (HC 129), paragraph 31, 27 July 2022

Government response

The government responded to the whole report on 8 September 2022 (deadline 27 September 2022).

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

The Department for Work and Pensions (DWP) sets out its position on the Committee's recommendations on the cost of living, declining several (including a review of benefit adequacy and a written Pension Credit strategy) while describing existing communications work and support measures.

  • On benefit uprating, DWP says it "will not be making any IT changes" to legacy benefits as they close, and that there are "no plans to change the up-rating period", because a consistent period means peaks and troughs "even out over time".
  • The Government says it does not intend to conduct a specific review of benefit adequacy; in the autumn the Secretary of State will undertake her statutory annual up-rating review and may increase benefits "if she considers it appropriate".
  • On the benefit cap, the Government says the cost-of-living payment is exempt from it, and that the Secretary of State "is reviewing further advice on this". It gives no date.
  • On Pension Credit, DWP "does not consider that a written strategy or targets for take-up" are required, citing existing work with organisations; it is "looking at processes" that might be simplified but says automatic awards are not possible.

Read the government's response ↗ Report an error