Source · Select Committees · Work and Pensions Committee
Second Report - The Cost of Living
Work and Pensions Committee
HC 129
Published 27 July 2022
Recommendations
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 …
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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
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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 …
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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
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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 …
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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
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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 …
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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
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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, …
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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
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Conclusions (1)
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.