Social Security (Additional Payments) (No. 2) Bill

Dean Russell Excerpts

2nd reading
Tuesday 21st February 2023 Commons Chamber

[The Parliamentary Under-Secretary of State for Work and Pensions (Mims Davies)]

I begin by thanking all those who have contributed to this debate, which has been, as the hon. Member for Westminster North (Ms Buck) said, short but important. As my right hon. Friend the Secretary of State for Work and Pensions has said, the Bill legislates for two key elements of the £26 billion package of further support announced by the Chancellor in November. It builds on last year’s £37 billion package of support to help with the cost of living, and demonstrates our continued commitment to ensuring that people continue to get the help that they need throughout these challenging times.

The Bill plays a vital role in ensuring that, over the next financial year, we can continue to help the most vulnerable to cope with the increased cost of living brought about by global pressures. We look forward to and welcome continued support from hon. Members across the House, including from Front Benchers, to ensure that the legislation progresses quickly. That ensures that we can begin to make the first payments to those people on means-tested benefits in the spring.

The focus of the debate is on the provisions in the Bill that will give additional support of up to £900 to households on means-tested benefits, and on the separate payment of £150 for people on disability extra costs benefits. The Secretary of State already noted that last year we successfully, at unparalleled pace, delivered tens of millions of payments to people across the UK. That was in addition to our normal benefit processing operations. I pay tribute to my officials at the Department for Work and Pensions and all the civil service teams across Government who worked tirelessly to ensure that happened.

We were able to achieve that delivery because we deliberately kept the eligibility criteria for the payments as simple as possible. Let me respond to hon. Members who asked why. We were keen to avoid introducing complexity, which could ultimately lead to delays and unacceptable levels of error or fraud.

[Dean Russell (Watford) (Con)]

I applaud the additional benefits, but how can my constituents in Watford find out about them? Will there be a communications campaign?

[Mims Davies]

I thank my hon. Friend, who is standing up as ever for his constituents. There is a cost of living website, there will be details on gov.uk and of course there is the benefits calculator on gov.uk. Those who are entitled will not need to do anything, because payment will be made to them. I hope that reiterates the point. There will be a rounded communications campaign on that. In fact, I made a video just this morning. I hope that is helpful—I promise the video was on this issue.

The key principle that has guided our approach to the Bill this time is to make those further payments to millions of vulnerable people over the coming year. Keeping the rules simple means that people on a qualifying benefit will receive the cost of living payment. That is why we are introducing the Bill. I reassure hon. Members across the House, including on the Opposition Benches, that we did take our time to look at addressing some of the hard edges. Ultimately, we concluded that introducing any significant policy changes would risk delaying payments to millions of people and introducing unacceptable levels of fraud and error. I will go into detail on that shortly, if I may.

We will be delivering the means-tested cost of living payments in three separate payments in 2023-24, as discussed, reducing the chances of someone’s missing out altogether. For those who miss out on a cost of living payment, and for others who may need further support with the costs of essentials on top of our statutory provision, we are extending the household support fund throughout the next financial year. The details have been confirmed today.

The extension allows local authorities in England to continue to provide discretionary support with the cost of essentials, particularly energy and food. The devolved Administrations will receive consequential funding, as usual, to spend at their discretion and with their expert local knowledge—[Interruption.] Sorry, I thought someone was interrupting there. The household support fund guidance and outlines have been released today. It is our expectation that local authorities will prioritise those in particular need and consider supporting those who may, through no fault of their own, have missed out on those cost of living payments but nevertheless are in need.

There have been a number of contributions to the debate and I will to try to respond to some of the points made in turn. The right hon. Member for Leicester South (Jonathan Ashworth) talked about the energy price cap. He welcomed our uprating, which is significant. I remind him that childcare on universal credit is more generous than on legacy benefits and the way we have drawn the household support fund will cover many of the points he raised; I hope he will have a chance to look at those interventions. The personalised support with the Help to Claim service, working with the supporting families programme from the Department for Levelling Up, Housing and Communities, will help the families with complex needs that the right hon. Gentleman spoke about.

The hon. Member for Glasgow East (David Linden) called this “substandard legislation”, which I take severe issue with, but he took the opportunity to make wider points about social security and talked about the “punitive sanctions regime”. I think we will always beg to differ on that. I make the point very strongly that this is a reserved matter. We are delighted to be making the payments for Scotland and today providing the Barnett consequentials in relation to the household support fund and further assistance—[Interruption.] I am sure he cannot resist intervening, so I will let him.