Covid-19: Low-income Families

Baroness Sherlock Excerpts

Thursday 8th October 2020 Lords Chamber

Asked by

[Baroness Sherlock]

To ask Her Majesty’s Government what assessment they have made of the impact of the COVID-19 pandemic on (1) low-income families with children, and (2) the support provided to them by the social security system.

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

A direct assessment of Covid-19’s impact on low-income families with children has not been made. However, we are monitoring several data sources, including Her Majesty’s Treasury’s recent distribution analysis of Covid-19’s impact on working households. The Treasury analysis has shown that the Government’s unprecedented support package, including job retention, self-employment protection schemes and an additional £9 billion to strengthen the welfare system, has supported the poorest working households the most, with those in the bottom 10% seeing no income reduction.

[Baroness Sherlock (Lab) [V]]

My Lords, the Government may not make an assessment but I am seriously worried by mounting evidence from Action for Children, CPAG and the Trussell Trust of parents struggling to pay the bills and to feed their kids in this pandemic. We could help by lifting the benefit cap and the two-child limit and topping up legacy benefits, but Ministers have said no and now the Chancellor is threatening to scrap the £20 a week he put on universal credit. I have two simple questions. Does the Minister accept the evidence that a growing number of parents are struggling financially? If she does, what are the Government going to do about it?

[Baroness Stedman-Scott (Con)]

I take the noble Baroness’s point well. I assure her that we are considering all evaluations—the Trussell Trust, Joseph Rowntree and Action for Children, as well as Understanding Society, the Covid-19 survey and the opinions and lifestyle survey by the Office for National Statistics. I am sure this question will come up many times today, so I say that the £20 UC increase was put in for one year only. As my colleague the Secretary of State for Work and Pensions in the other place said, dialogue is continuing with HMT on this, and the Prime Minister confirmed yesterday that it is under constant review.