Select committee: Economic Affairs Committee
Recommendation 25
3rd Report - Employment and COVID-19: time for a new deal
Published 14 Dec 2020
Paragraph 114
Economic Affairs Committee Employment and COVID-19 All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Recommendation (the committee's words)
We agree that increasing the child element of Universal Credit and Child Tax Credit would be a better way to target support than a uniform increase in Child Benefit. The Government should assess the merits of these proposals and increase the generosity of social security for struggling families. In addition, there is evidence that spending money on social security can have strong multiplier effects because low-income families have a greater propensity to spend additional income.
From: Economic Affairs Committee, 3rd Report - Employment and COVID-19: time for a new deal, paragraph 114, 14 December 2020
Government response
The government responded to the whole report on 12 February 2021 (deadline 14 February 2021).
Summary written by Accountability Index from the government's response. It is not the government's own words.The Government's response sets out the support already provided, says it will "keep all impacts and policies under review", and states that further details of its economic response will be set out at the Budget.
- On the Universal Credit uplift, the Government says the £20 per week increase "is due to end in April 2021" and that it "will continue to assess how best to support people and the economy".
- On a new state entity to manage debt, it says it has "chosen not to pursue" TheCityUK's proposal, stating that lenders, not the Government, are best placed to support borrowers repaying guaranteed loans.
- On apprenticeship levy funds, it says employers already have 24 months to spend them, that it believes this "is sufficient", and that it does "not intend to make any changes to current arrangements".
- On Kickstart, it reports removing the minimum threshold of 30 vacancies on 3 February, so employers can apply directly or via a gateway organisation. It says it has "no plans" to let other organisations refer young people.