Source · Select Committees · Work and Pensions Committee
Second Report - The Cost of Living
Work and Pensions Committee
HC 129
Published 27 July 2022
Recommendations
2
Accepted
We recommend that the Department for Work and Pensions engage with the organisations mentioned throughout...
Recommendation
We recommend that the Department for Work and Pensions engage with the organisations mentioned throughout this report to assess what further or more direct support needs to be provided to any of these groups as the cost of living continues …
Read more
Government Response Summary
The Department says it already works hard to ensure that people are in receipt of their full entitlement and communicates with the public about benefits through various channels, including paid advertising, stakeholder and employer engagement, and campaigns. They also say they are providing extra financial help to the most vulnerable people, including the £650 cost of living payment.
Department for Work and Pensions
View Details →
3
Rejected
Para 17
We welcome the inclusion of those on legacy benefits in the Government’s support measures.
Recommendation
We welcome the inclusion of those on legacy benefits in the Government’s support measures. We recognise that there are logistical difficulties in getting the necessary support in place quickly, but the Government does not seem to have taken on board …
Read more
Government Response Summary
The government says one-off payments are the quickest way to deliver support given the current cost-of-living situation. There is no commitment to prioritising other options like more responsive benefit uprating in the future.
Department for Work and Pensions
View Details →
5
Rejected
Para 24
While an annual uprating is workable and effective at times of stable inflation, it is...
Recommendation
While an annual uprating is workable and effective at times of stable inflation, it is not appropriate in more volatile economic circumstances and is causing people real hardship. In the medium-term the Department should reduce the length of time between …
Read more
Government Response Summary
The government will not reduce the length of time between the inflation reference period and the uprating implementation date because it is using one-off payments instead and there are IT limitations. They will continue using a consistent period for up-rating as it evens out peaks and troughs over time.
Department for Work and Pensions
View Details →
6
Accepted
Para 28
Whilst £1.5 billion for the Household Support Fund is welcome, we are concerned that there...
Recommendation
Whilst £1.5 billion for the Household Support Fund is welcome, we are concerned that there is no information available to indicate where this funding is going, The cost of living 37 and whether or not it is supporting the most …
Read more
Government Response Summary
The government states that they are clear that Local Authorities are best placed to decide how best to support local people in need, within the clear expectations set out in the Household Support Fund guidance and they have published the Management Information (MI) for all completed discretionary schemes.
Department for Work and Pensions
View Details →
7
Rejected
Para 29
The Housing Support Fund was designed to be a short-term measure but is now in...
Recommendation
The Housing Support Fund was designed to be a short-term measure but is now in its third funding cycle. While we all hope to see far more stability in the economy in coming years, the need for such funds highlights …
Read more
Government Response Summary
The Government does not intend to conduct a specific review into the adequacy of benefit levels, stating there is no objective way of deciding what an adequate level of benefit should be.
Department for Work and Pensions
View Details →
8
Acknowledged
The reset of Local Housing Allowance to cover the 30th percentile of rents was a...
Recommendation
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 …
Read more
Government Response Summary
The government describes measures to improve access to home ownership and states that LHA rates are not intended to cover all rents in all areas and are forecast to continue at their current level through to 2025-26, but this will be reviewed annually.
Department for Work and Pensions
View Details →
9
Acknowledged
We welcome the decision by the Government to exempt the cost of living payments from...
Recommendation
We welcome the decision by the Government to exempt the cost of living payments from the benefit cap so that those most in need of support can receive it. This decision suggests, however, that the Department knows that the cap …
Read more
Government Response Summary
The government acknowledges the recommendation for reviewing the benefit cap and states that the Secretary of State is reviewing further advice on this.
Department for Work and Pensions
View Details →
10
Rejected
Deductions from the Department are contributing to hardship for struggling households, who are already trying...
Recommendation
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 …
Read more
Government Response Summary
The government does not believe pausing deductions by default is in the claimant’s best interest, as the impact of any future benefit uprating would clearly be diminished if it coincided with the re-introduction of any paused deductions. However, DWP will work with claimants to review their financial circumstances and consider a temporary reduction in their rate of repayment and refreshed guidance will be provided to UC agents.
Department for Work and Pensions
View Details →
11
Rejected
Pension Credit provides vital support for pensioners, yet some 850,000 eligible households do not claim...
Recommendation
Pension Credit provides vital support for pensioners, yet some 850,000 eligible households do not claim it. The rising cost of living means this must now be urgently addressed. The Government’s efforts are focused on a communications campaign. The Committee heard, …
Read more
Government Response Summary
The government does not consider that a written strategy or targets for take-up of Pension Credit are required, given the work it is already doing and that automatic awarding is not possible based on current data.
Department for Work and Pensions
View Details →
Conclusions (2)
1
Conclusion
Acknowledged
Para 11
The Committee welcomes the Government’s swift action and range of measures introduced in response to the cost of living crisis. It is clear that these will offset some of the increased costs for households living in poverty. However, we have heard very concerning evidence about the impact of the crisis …
Government Response Summary
The government acknowledges the impact of the cost of living crisis on specific vulnerable groups and describes its communication efforts to ensure people receive their full benefit entitlements, including the Help for Households campaign and a dedicated online hub.
4
Conclusion
Rejected
Para 23
The systems that legacy benefits run on are not fit for purpose. It is disappointing that the Department has not adapted its IT systems to allow for flexibility in uprating these benefits to respond to national events. The Department has scheduled and then delayed the migration of claimants from legacy …
Government Response Summary
The government rejects making IT changes to uprate legacy benefits because working-age legacy benefits are closing and those legacy claimants will be moved to UC by 2024. They also have no plans to change the up-rating period.