Universal Credit

Baroness Lister of Burtersett Excerpts
Wednesday 13th May 2020

(3 years, 10 months ago)

Lords Chamber
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Asked by
Baroness Lister of Burtersett Portrait Baroness Lister of Burtersett
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To ask Her Majesty’s Government what assessment they have made of the impact of the benefit cap on the incomes of Universal Credit claimants following the increase in the Universal Credit standard allowance announced by the Chancellor of the Exchequer on 20 March.

The Question was considered in a Virtual Proceeding via video call.
Baroness Stedman-Scott Portrait The Parliamentary Under-Secretary of State, Department for Work and Pensions (Baroness Stedman-Scott) (Con)
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My Lords, we monitor the impact of the benefit cap policy and publish these findings every three months. The latest available statistics were published last week, on 7 May, and reflect the position as at February this year. The next publication, scheduled for 6 August, will reflect the current position and the impact of the increases awarded from April of this year.

Baroness Lister of Burtersett Portrait Baroness Lister of Burtersett (Lab)
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My Lords, welcome as the increase is, many thousands will not benefit because of the cap, which is already causing real hardship and unfairness, as demonstrated by the Work and Pensions Committee, yet it is not realistic or safe at present to expect people to seek work or reduce housing costs to avoid it. Will the Government now listen to anti-poverty and faith groups, the IFS and others, and urgently fulfil their statutory duty to review the cap and suspend it, or, if operationally easier, raise it significantly?

Baroness Stedman-Scott Portrait Baroness Stedman-Scott
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I must be very clear that it is not the Government’s intention to change the current level of the benefit cap. What I want to point out is that claimants may benefit from a nine-month grace period, where their universal credit will not be capped, if they have a sustained work record. Exemptions will also continue to apply for the most vulnerable claimants who are entitled to disability benefits and carer benefits. I finish my answer by saying that the Government have quickly and effectively introduced £7 billion-worth of measures that benefit those facing the most severe financial disruption.