Source · Select Committees · Work and Pensions Committee
Recommendation 2
2
Paragraph: 25
Cost of living payment eligibility creates an unfair "cliff edge" income gap.
Conclusion
We are concerned by the cliff edge nature of the cost of living payments which creates a fundamentally unfair income gap where a person is financially penalised for earning just over the qualifying threshold, being in receipt of a sanction or not receiving an eligible payment during the qualifying period. For example, a person earning just £5 over the qualifying threshold would lose nearly £300 if they are ineligible for a cost of living payment and would be significantly worse off than someone just under the threshold.
Paragraph Reference:
25
Government Response
A response document is linked to this report, dated 25 January 2024. Response attribution to this conclusion has not been verified. Read the response document ↗