Inflation: Families

Baroness Wilcox of Newport Excerpts

Wednesday 16th March 2022 Lords Chamber

[Baroness Scott of Bybrook (Con)]

The question my noble friend asks is probably a little above my pay grade. I will go back to the point that the Government are closely monitoring the situation with the Bank of England and will be looking at all these issues as we go forward.

[Baroness Wilcox of Newport (Lab)]

My Lords, the Government’s decision to cut the universal credit uplift has left hundreds of thousands of extra children in poverty. Following Labour’s lead in reducing the taper rate to allow those on low incomes to keep more of what they earn is indeed a welcome step, but what else are the Government doing to make up for the biggest ever cut to social security, as well as tax hikes and a cost of living crisis?

[Baroness Scott of Bybrook (Con)]

My Lords, our long-term focus for all families remains on continuing to support parents into work and to progress in work. This approach is based on clear evidence of the importance of parental employment. That is where we are putting our investment. Particularly where parents are in full-time employment, it substantially reduces the risk of poverty and improves the long-term outcomes for children. In 2019-20, a child in a home where all adults were working was around six times less likely to be in absolute poverty.