Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government what steps they are taking to increase employment levels.
Answered by Baroness Sherlock - Minister of State (Department for Work and Pensions)
The Government has set a long-term ambition to achieve an 80% employment rate and is committed to reducing economic inactivity. To support this ambition, the Get Britain Working White Paper was published on 26 November. Backed by £240 million investment, the White Paper sets out fundamental reforms to employment support to help people get into and on in work.
The reforms included a new national jobs and career service, a youth guarantee and plans for joining up employment, health and skills support to meet the needs of local communities. Through this new approach everyone will have the opportunity to secure rewarding and fulfilling work.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government, further to the letter and impact assessment from the Secretary of State for Work and Pensions to the House of Commons Work and Pensions Select Committee on 19 November, what assessment they have made of the forecast that 100,000 additional pensioners per year will move into poverty as a result of changes to the winter fuel payments.
Answered by Baroness Sherlock - Minister of State (Department for Work and Pensions)
The last Labour Government lifted more than 1 million pensioners out of poverty, and this Government remain absolutely committed to supporting pensioners and giving them the dignity and security they deserve in retirement.
The latest modelling in the department shows that compared to the numbers that would have been in poverty without the policy to means test Winter Fuel Payments, it is estimated that there will be an additional 50,000 pensioners in relative poverty after housing costs in 2024/25, 2025/26, and 2027/28, and an additional 100,000 pensioners in relative poverty after housing costs in 2026/27, 2028/29 and 2029/30. For all other measures of poverty, it is estimated that there will be an additional 50,000 pensioners in poverty each year from 2024/25 to 2029/30. It is important to note that this modelling is subject to a range of uncertainties meaning the poverty impacts are rounded to the nearest 50,000 individuals which should be taken into account when interpreting the results.
The modelling does not take into account any impacts of the measures we are taking to increase Pension Credit take-up and to ensure pensioners get the benefits to which they are entitled.
For further details on the analysis, please see: Winter Fuel Payments eligibility change - internal modelling on pensioner poverty levels - GOV.UK
We have taken immediate action to increase the take up of Pension Credit, working with charities, local authorities and through a campaign on radio, TV and print media. The Government has written to around 11.5 million pensioners about the changes to the Winter Fuel Payment and included information about claiming Pension Credit. We have also written to 120,000 pensioners on Housing Benefit who could be entitled to Pension Credit, to encourage them to claim. Our campaign has seen Pension Credit applications increase by 152%, and we will continue with this endeavour.
In the longer term, the Department will work to bring together the administration of Pension Credit and Housing Benefit, to ensure that pensioner households receive the benefits to which they are entitled.
We have also put in place extra financial support for the most vulnerable households including pensioners through the £150 Warm Home Discount to help with energy bills, the Cold Weather Payments and our extension of the Household Support Fund.
This is all underpinned by the State Pension, protected by the Triple Lock. Over 12 million pensioners will see their basic or new State Pension increase by 4.1% in April 2025, worth up to £470 a year. Based on OBR Autumn 24 forecasts, over the course of this parliament, the full yearly rate of the new State Pension will go up by around £1900. At the same time, the full yearly rate of basic State Pension is forecast to increase by around £1500.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government what assessment they have made of Britain’s labour market, particularly in relation to (1) the decrease in job placements, and (2) the decline in pay growth.
Answered by Baroness Sherlock - Minister of State (Department for Work and Pensions)
Job placements, as measured by employment, are currently at 33.2m. These have increased by 265,000 on the quarter and 150,000 on the year. The employment rate remains lower than it was immediately pre-COVID by 1.4 percentage points. This has been driven almost entirely by increased economic inactivity, including long term sickness which is at a near-record high.
Regular pay growth (excluding bonuses) is currently at 5.1% on the year without accounting for inflation. This rate of pay growth has slowed since June 2023 when it reached 7.9%. Regular pay growth after inflation is currently at 2.2% on the year, following falls in real pay in 2022 and 2023 due to high inflation. Regular earnings after inflation are currently only 3% or £15 a week higher in the latest three months than the start of 2008, 16 years ago.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government what steps they are taking to ensure the wellbeing of pensioners this winter, particularly in the light of (1) the forecasted rise of household bills, and (2) the removal of the Winter Fuel Allowance.
Answered by Baroness Sherlock - Minister of State (Department for Work and Pensions)
Over the next five years we expect over 12 million pensioners are likely to see their State Pensions increase by thousands of pounds as a result of our commitment to the Triple Lock.
Additionally, the Government will invest an extra £6.6 billion over this Parliament in clean heat and energy efficiency through the Warm Homes Plan, upgrading five million homes through solutions like low carbon heating and improved insulation to reduce emissions and cut bills.
The Household Support Fund is also being extended for a further six months, from 1 October 2024 until 31 March 2025. An additional £421 million will be provided to enable the extension of the HSF in England, plus funding for the Devolved Governments through the Barnett formula to be spent at their discretion, as usual.
The Warm Home Discount scheme in England and Wales provides eligible low-income households across Great Britain with a £150 rebate on their electricity bill. This winter, we expect over three million households, including over one million pensioners, to benefit under the scheme.
We know there are low-income pensioners who aren’t claiming Pension Credit, and we urge those people to apply. This will passport them to receive Winter Fuel Payment alongside other benefits – hundreds of pounds that could really help them. We will ensure that the poorest pensioners get the support they need.
Over the past two years, energy bills have fallen. Between 1 October to 31 December 2024 Ofgem’s energy price cap is set at £1717 per year for a typical household. This means the price cap for October to December 2024 will be more than 5% lower (£117 less) than for October to December 2023.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government what steps they are taking to support workers to better understand their pension options.
Answered by Baroness Sherlock - Minister of State (Department for Work and Pensions)
The Government recognises that people face important decisions about how to use their pension savings and ensures everyone has access to free, impartial pension guidance through the Money and Pensions Service (MaPS). MaPS’ MoneyHelper brand provides support on all areas of UK pensions to the public regardless of age. The service offers a range of pension guidance through articles and support from pension specialists, via written enquiries, webchat and a telephone helpline.
The Department for Work and Pension’s digital Midlife MOT is a review for workers in their 40s, 50s and 60s that helps them take stock of their finances, skills and health, enabling them to get access to the best possible guidance. This includes helping people to understand planning for later life, including their workplace pension and State Pension options.
MaPS also offers more targeted support as people progress towards retirement. Pension Wise, a service delivered through MoneyHelper, can help anyone over 50 understand their options for accessing their Defined Contribution pension pots. After entering retirement, ongoing guidance is available through the MoneyHelper website, webchat and telephone helpline.
Pension schemes also have a responsibility under the Occupational and Personal Pension Schemes (Disclosure of Information) Regulations 2013 to provide information on the options available to members when they decide to access their pensions.
Furthermore, the Government signalled its intent, through the Pension Schemes Bill announced in the King’s Speech, to place duties on all trustees of occupational pension schemes to tailor the retirement products they offer in order to support people when accessing their pensions. This will ensure pots are accessed in the right way to support people in retirement and keep money invested for longer.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government what assessment they have made of the rise in (1) unemployment, and (2) economic inactivity, highlighted in the Office for National Statistics data, published on 16 April; and what steps they are taking to support individuals transitioning back into employment.
Answered by Viscount Younger of Leckie - Shadow Minister (Work and Pensions)
The Department monitors a wide range of indicators to understand trends in employment, unemployment and inactivity. This is in line with advice from the ONS who say “we would advise caution when interpreting short-term changes in headline rates and recommend using them as part of our suite of labour market indicators” given the recent volatility in Labour Force Survey (LFS) estimates.
DWP supports people across the country to move into and progress in work and is committed to reducing economic inactivity. The Department delivers comprehensive employment support including through face-to-face time with Work Coaches in our Jobcentres and via more intensive contracted employment programmes. Last year we also announced a wide range of additional support via the Spring Budget and the Back to Work Plan including extending and expanding our Restart scheme, announcing our new WorkWell service and expanding Additional Jobcentre Support.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government, following the release of data showing that the number of children living in absolute poverty has risen by the highest rate in 30 years, what steps they are taking to address the increase in child poverty rates.
Answered by Viscount Younger of Leckie - Shadow Minister (Work and Pensions)
These statistics cover 2022/23, a year when war in Ukraine and global supply chain challenges led to unexpected and high rates on inflation, averaging 10% over the year. These factors are reflected in the statistics. In response to these pressures, the Government provided an unprecedented cost of living support package which helped to shield households from the impact of inflation. Analysis shows that the Government’s cost of living support prevented 1.3 million people from falling into absolute poverty after housing costs in 2022/23. That includes 300,000 children, 600,000 working-age adults and 400,000 pensioners.
Since the period covered by these statistics, the Government has taken firm action to support families on the lowest incomes. The Government has spent around £276bn through the welfare system in 2023/24, including around £125bn on people of working age and children. We took action to support those on the lowest incomes by uprating benefits and State Pensions by 10.1% from April 2023. We are continuing to support people in 2024/25 by uprating working age benefits by 6.7% and raising the Local Housing Allowance rates to the 30th percentile of local market rents, benefiting 1.6 million low-income households.
With over 900,000 vacancies across the UK, our focus remains firmly on supporting parents to move into and progress in work, an approach which is based on clear evidence about the importance of parental employment - particularly where it is full-time - in substantially reducing the risk of child poverty. The latest statistics show that in 2022/23, children living in workless households were over 6 times more likely to be in absolute poverty (after housing costs) than those where all adults work.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government what steps they are taking to (1) tackle in-work poverty, and (2) create more job opportunities across the UK.
Answered by Viscount Younger of Leckie - Shadow Minister (Work and Pensions)
The Government believes that work is the best way to boost living standards and reduce poverty. Jobcentres across Great Britain provide personalised interventions to support those both in and out of work, including helping low-paid earners to increase their earnings.
We are also making work pay. On 1 April 2024, the Government will increase the National Living Wage (NLW) for workers aged 21 years and over by 9.8% to £11.44 per hour, representing an increase of over £1,800 to the gross annual earnings of a full-time worker on the NLW.
Ensuring a strong economy with a diverse and vibrant jobs market allows everyone to use their talents to the full.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government, further to the Autumn Statement made by the Chancellor of the Exchequer on 22 November where he stated that if jobseekers "choose not to engage with the work search process for six months, we will close their case and stop their benefits" (HC Deb col 336), what steps they are taking to support individuals with health conditions and disabilities in finding employment.
Answered by Viscount Younger of Leckie - Shadow Minister (Work and Pensions)
We are investing £2.5 billion over the next five years in our ‘Back to Work Plan’; this builds on the Government's existing package of support to create a more inclusive and productive labour market that helps disabled people, and people with health conditions, to start, stay and succeed in work. This support includes: a new WorkWell service to join up employment and health support at a local level, reforming the Fit Note process, delivering the Universal Support employment programme, improving the quality of occupational health for employers, and expanding access to mental health services.
As part of the Autumn Statement, we also announced the intention to close the claim of those who have been disengaged for 6-months or more, where they are in receipt of a nil Universal Credit award following a sanction decision. We will not be closing the claims of anyone who is in receipt of other Universal Credit elements, such as the disability, child, or housing element. The conditionality and sanctions regime also does not apply to those in the No Work Related Requirements, such as those with a severe health condition or disability.
For claimants who must meet certain work-related requirements to receive their Universal Credit payment, these requirements will be based on individual and household information and will take account of health, caring responsibilities, ongoing work or volunteering, and any earnings. Furthermore, all requirements are set in discussion with the claimant and tailored to their capability and circumstances, making them realistic and achievable.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government, following the rise in demand for food banks, what steps they are taking to support families experiencing food poverty.
Answered by Viscount Younger of Leckie - Shadow Minister (Work and Pensions)
Government recognises that understanding food security is important and this is why we added internationally used food security questions to the Family Resources Survey in 2019/20 and added further questions on foodbank use in 2021/22. These statistics help our understanding of the characteristics of people most in need and, alongside the broad suite of poverty data, help to shape future policy considerations.
We are committed to reducing poverty and supporting low-income families. We will spend around £276bn through the welfare system in Great Britain in 2023/24 including around £124bn on people of working age and children.
From April 2023, we uprated benefit rates and State Pensions by 10.1% and, subject to Parliamentary approval, working-age benefits will rise by 6.7% from April 2024, in line with inflation.
With almost one million job vacancies across the UK, our focus remains firmly on supporting people, including parents, to move into and progress in work. This approach is based on clear evidence about the importance of employment - particularly where it is full-time - in substantially reducing the risks of poverty. The latest statistics show that in 2021/22 children living in workless households were 5 times more likely to be in absolute poverty, after housing costs, than those where all adults work.
To help people into work, our core Jobcentre offer provides a range of options, including face-to-face time with work coaches and interview assistance. In addition, there is specific support targeted towards young people, people aged 50 plus and job seekers with disabilities or health issues.
To help people progress in work, our voluntary in-work progression offer, rolled-out from April 2022, is now available in all Jobcentres across Great Britain. We estimate that around 1.2m low-paid benefit claimants will be eligible for support to progress into higher-paid work.
To support parents into work, on 28 June 2023, the maximum monthly amounts that a parent can be reimbursed for their childcare increased by 47%, from £646.35 for one child and £1,108.04 for two or more children to £950.92 and £1,630.15 respectively. Importantly, we can now also provide even more help with upfront childcare costs when parents move into work or increase their hours.
We are also committed to ending low hourly pay for those on the National Living Wage (NLW) in the UK. From 1 April 2023, the National Living Wage increased by 9.7% to £10.42 an hour for workers aged 23 and over. Further to this, on 1 April 2024, we will increase the National Living Wage for workers aged 21 years and over by 9.8% to £11.44 representing an increase of over £1,800 to the gross annual earnings of a full-time worker on the NLW.
This Government understands the pressures people are facing with the cost of living which is why we are providing total support of £104bn over 2022-2025 to help households and individuals. Included within this, to support low-income households with increasing rent costs, the government will raise Local Housing Allowance rates to the 30th percentile of local market rents in April 2024. This will benefit 1.6 million low-income households, who will be around £800 a year better off on average in 2024-25.