Spring Statement Affordability Test

Lord Bishop of St Albans Excerpts

Wednesday 23rd March 2022 Lords Chamber

[Baroness Penn (Con)]

My Lords, we have helped those families in a number of ways. In fact, with the universal credit changes at the Budget our first priority was giving, effectively, tax breaks to those in lowest income households. We have also extended the household support fund by £500 million a year. That allows local authorities, which are often best placed to identify those families, to give them the right support at this difficult time.

[The Lord Bishop of St Albans]

My Lords, in the light of the huge inflationary pressures that are on people across the board and with the Government’s plan to use universal credit as a way of recovering £6 billion-worth of historic tax credit debt, what assessment has been made of whether there is the slightest chance of recovering those debts? What assessment has been made of that level of debt?

[Baroness Penn (Con)]

My Lords, the Government have done a significant amount of work in helping households manage their debts, for example, through the breathing space programme and the statutory debt repayment programme. It is important that the Government manage public money well and, where possible, ensure that where money may have been overpaid or mispaid it is paid back.