Select committee: Work and Pensions Committee
Recommendation 10
Second Report - The Cost of Living
Published 27 Jul 2022
Paragraph 55
Addressed to Department for Work and Pensions
Work and Pensions Committee The cost of living All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Recommendation (the committee's words)
Deductions from the Department are contributing to hardship for struggling households, who are already trying to tackle rising costs. We have heard that for some, deductions are pushing them into destitution and leading them to depend on food banks. The Government has urged creditors to accept reduced monthly payments or write off debts, but isn’t following its own advice. We recommend that deductions are paused, and then only restored gradually as the rate of inflation 38 The cost of living reduces, or when benefits have been uprated to reflect the current rate of inflation. If the Government is not willing to pause deductions then it must increase awareness of existing options such as short-term pauses, and ensure that those who are struggling can get accessible and practical debt advice. The Government should also consider the Committee’s recommendations on deductions and debt in our 2020 ‘Universal Credit–the wait for a first payment’ report. We would welcome a response by the end of 2022.
From: Work and Pensions Committee, Second Report - The Cost of Living (HC 129), paragraph 55, 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.