Select committee: Work and Pensions Committee
Recommendation 8
Second Report - Benefit levels in the UK
Published 21 Mar 2024
Paragraph 100
Addressed to Department for Work and Pensions
Work and Pensions Committee Benefit levels in the UK All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Recommendation (the committee's words)
We welcome the Government’s recommitment in its February 2024 Disability Action Plan to take forward plans to set up an Extra Costs Taskforce to understand the extra costs disabled people face in their daily lives. DWP should be part of the Extra Costs Taskforce. Once operationalised, DWP should use findings from the Taskforce to set a benchmark for the health and disability related costs it intends PIP to cover. It should then set out how it intends to reach this benchmark alongside annual uprating.
From: Work and Pensions Committee, Second Report - Benefit levels in the UK (HC 142), paragraph 100, 21 March 2024
Government response
The government responded to the whole report on 23 May 2024 (deadline 21 May 2024).
Summary written by Accountability Index from the government's response. It is not the government's own words.The government's response sets out where it has taken action, but it gives no commitment to the Committee's main proposals on benchmarks, an 'Uprating Guarantee', independent research or a permanent Household Support Fund.
- On a benchmark for income-replacement benefits, it states it "does not intend to establish a benchmark"; it notes there is "no overall agreed approach to benchmark benefit levels".
- It "agrees that PIP is not operating as intended" and points to the Health and Disability Green Paper of 29 April 2024. On the Extra Costs Taskforce it says it would "not be appropriate to further comment" until the consultation response is published.
- On uprating, it has "no plans to change the uprating process" and no plans to change the gap between the inflation measure and implementation. LHA rates will be reviewed every year, taking into account "a range of factors".
- It has no plans to commission further research on benefit levels and health, or independent research on whether levels meet objectives. The Household Support Fund is extended for six months, not made permanent. It will release Work Coach and Disability Employment Adviser statistics quarterly.