Inflation: Families

Lord Farmer Excerpts

Wednesday 16th March 2022 Lords Chamber

[Baroness Scott of Bybrook (Con)]

My Lords, the Government are spending £6.6 billion this year in increasing benefit rates: £2.6 billion on working-age benefits and £4 billion on pension benefits. I agree that the uprating order was only 3.1%, but we have increased other rates, as I explained to the right reverend Prelate. We will continue to monitor it and, if necessary, will look in further detail.

[Lord Farmer (Con)]

My Lords, the right reverend Prelate’s Question raises the problem of cash flow. When inflation is climbing, as it is now, families are lagging behind the curve. What are the Government doing to help them with this negative cash flow at present? Also, the obvious way to increase income is to progress in work, including by moving into more skilled work. What are the Government doing to fill skill vacancies?

[Baroness Scott of Bybrook (Con)]

My noble friend is absolutely correct. As I said, we are providing support of around £20 billion this financial year to help families with the cost of living. The most important thing must be to get people into work. Our expanded multimillion-pound Plan for Jobs is continuing to target tailored support so that universal credit claimants, including those already in work, can access the support they need. As my noble friend says, this includes skills development. It is really important to get people into work in the first place but also for them to progress in those jobs and earn more for their families.