Spring Statement Affordability Test

Baroness Wheatcroft Excerpts

Wednesday 23rd March 2022 Lords Chamber

[Baroness Penn (Con)]

My Lords, I think I have been clear about the health and social care levy, which is being used to fund people’s number one priority, our National Health Service. In good news for my noble friend, I am sure he will have noticed that today we are raising the employment allowance to £5,000. That is a £1,000 tax cut for small businesses, cutting employers’ national insurance bills.

[Baroness Wheatcroft (CB)]

My Lords, how does the Minister expect hard-pressed local authorities to divide £500 million between the 11 million families who are dependent on universal credit now? Does she really believe that giving that money to local authorities is preferable to giving people an extra uplift in universal credit?

[Baroness Penn (Con)]

My Lords, as many noble Lords will know, people on universal credit are often in work and earning. They will benefit from the increase in the national insurance threshold and from the increase in the national living wage by 6.6%. They will also benefit from the previously announced cut to the UC taper and work allowance. The Household Support Fund has been in operation for a period of time. As for the extra money going into it, the local authorities have already been managing that money and distributing it, and I am sure they are doing a very good job.