Source · Select Committees · Work and Pensions Committee
Recommendation 1
1
Accepted
Paragraph: 17
Automated payment system provides swift support but is limited in targeting specific group needs.
Conclusion
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 Summary
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.
Paragraph Reference:
17
Government Response
Accepted
HM Government
Accepted
The Department is committed to providing direct and timely relief to those who need it most, which was especially important during the inflationary pressures leading to the rising cost of living. The automated, one-off payment method, which we employed, got support faster to those who needed it most. More than 8 million households on means- tested benefits received Cost of Living Payments of up to £650 in 2022, and more than 8 million households will receive up to £900 in Cost of Living Payments in 2023/24. Keeping this policy simple enabled the department to minimise potential fraud and error. Cost of Living Payments enabled us to quickly target additional support in exceptional circumstances pending the statutory annual review of State pension and benefit rates which comes into effect in April each year. These rates were increased by 10.1% in April 2023 in line with prices growth, and with the triple lock commitment to increase the new and basic State Pensions in line with the highest of earnings growth, prices growth or 2.5%. From April 2024, subject to Parliamentary approval, most benefit rates will be increased by 6.7% in line with prices growth, and relevant State Pension and Pension Credit rates will be increased by 8.5% in line with earnings growth. For over 6 million people in the UK who are in receipt of eligible ‘extra-costs’ disability benefits, we have provided a £150 Disability Cost of Living Payment to support with additional costs that people may face. Additionally, more than 8 million pensioner households across the UK have received an additional Cost of Living Payment of £300 as a top up to the Winter Fuel Payment.