Inflation: Families

Baroness Lister of Burtersett Excerpts

Wednesday 16th March 2022 Lords Chamber

[Baroness Scott of Bybrook (Con)]

My Lords, the Government understand people’s concern about pressure on household budgets and are taking action to help. We are working closely and monitoring the situation with the Bank of England. The Government are also putting in place policies to help families and individuals to meet the rising costs of living, such as increasing the national living wage and cutting the taper rate in universal credit. I am sorry to disappoint the right reverend Prelate, but we have no plans to change the two-child policy.

[Baroness Lister of Burtersett (Lab)]

My Lords, ONS research shows that many are cutting back on basics in the face of the cost of living crisis, but what about parents struggling on inadequate benefits, the real value of which is set to fall by over 4% over the coming year? Many of them are already cutting back to the bone and cannot wait for next year’s smoothing. What are they supposed to do if the Government refuse to act on the growing calls for an additional increase in benefits?

[Baroness Scott of Bybrook (Con)]

My Lords, the Government are spending £6.6 billion this year in increasing benefit rates: £2.6 billion on working-age benefits and £4 billion on pension benefits. I agree that the uprating order was only 3.1%, but we have increased other rates, as I explained to the right reverend Prelate. We will continue to monitor it and, if necessary, will look in further detail.