Universal Credit

Baroness Thornhill Excerpts

Tuesday 18th April 2023 Lords Chamber

Asked by

[Baroness Thornhill]

To ask His Majesty’s Government what assessment they have made of the report by the Trussell Trust and Joseph Rowntree Foundation An Essentials Guarantee: Reforming Universal Credit to ensure we can all afford the essentials in hard times, published on 27 February; and in particular, the recommendation to introduce an ‘Essentials Guarantee’ to support those living in relative poverty.

[The Parliamentary Under-Secretary of State, Department for Work and Pensions (Viscount Younger of Leckie) (Con)]

My Lords, the department is aware of the report, but no formal assessment has been made. We have a long-term approach to tackling poverty and supporting people on lower incomes. The Government are increasing support for low-income and vulnerable households, with welfare expenditure forecast to rise from £251.8 billion in 2022-23 to £275.6 billion in 2023-24. As the Spring Statement made clear, the focus is on supporting workforce participation, helping people move into work and higher earnings.

[Baroness Thornhill (LD)]

I thank the Minister for his Answer. Of course, all increases will be welcome after years of freezes and below-inflation rises. However, the key issue is that universal credit levels today are based simply on the result of historical precedent and subsequent political assessments of what the Government can afford. Does the Minister agree that it is time for an objective, independent assessment based on evidence of real need and actual costs? Does he agree with the Rowntree analysis that the universal credit standard rate falls well below what is needed to afford basic essentials?

[Viscount Younger of Leckie (Con)]

We are certainly aware of the severe difficulties in some cases that households are experiencing. Our way of dealing with this—we are aware of the report, as I said earlier—is that, following the Autumn Statement announcement, measures directly aimed at helping households with cost of living pressures in the coming year 2023-24 are now better targeted to low-income households. Support provided from the £3,000 EPG and cost of living payment is on average more generous for households in the bottom four income deciles than our £2,500 cap alone.