Low-income Families: Benefits Freeze

Baroness Lister of Burtersett Excerpts

Monday 13th January 2020 Lords Chamber

Asked by

[Baroness Lister of Burtersett]

To ask Her Majesty’s Government what assessment they have made of the impact on low-income families of the four-year freeze in working age and children’s benefits.

[The Parliamentary Under-Secretary of State, Department for Work and Pensions (Baroness Stedman-Scott) (Con)]

My Lords, the benefit freeze was designed to put welfare on a sustainable footing, incentivising work and making welfare fairer. We conducted a number of assessments at the time of the Welfare Reform and Work Act in 2016; it was estimated that 30% of households would be affected by the policy, but that no one should take a direct cash loss as a result of the freeze. We have continued to monitor the impact of our policies through publications such as the annual release on households below average income. The latest available stats show that the number of people in absolute poverty in 2017 and 2018 was lower than in 2010. The benefit freeze will come to an end in April 2020, benefiting more than 10 million people.

[Baroness Lister of Burtersett (Lab)]

My Lords, welcome as the end of the freeze—as required by law—is, it will do nothing to restore the significant losses suffered by millions in poverty, which are, on average, nearly £400 this year for families with children. Those losses have contributed to increased homelessness, reliance on food banks, and general poverty and hardship. Will the Minister, who I know cares about such matters, therefore undertake to press on the Chancellor the case for an above-inflation increase as a tangible and immediate way of making good the Prime Minister’s “one nation” election pledges to level up and help those reliant on food banks with the cost of living?

[Baroness Stedman-Scott]

I understand the points that the noble Baroness has raised—you cannot argue with them. One of the major contributing factors was that inflation was twice what we thought it was going to be. It is no excuse, but that was it. I am touched that she thinks I can influence the Chancellor; I will have a really good go and keep her posted. My door is open to talk about this further.