Social Security Payments: Uprating

Lord Farmer Excerpts

Monday 10th October 2022 Lords Chamber

[Lord Davies of Gower (Con)]

We have targeted additional support directly at those most in need, with a £650 cost of living payment coming in two instalments this year, in addition to the £400 energy rebate and our energy price guarantee. This will save the typical household approximately £1,000 a year, based on the current October prices.

[Lord Farmer (Con)]

My Lords, I recognise that benefits claimants have been coping with higher inflation than 2022’s uprating, but it is not unreasonable to ask how the Government will maintain the vital work incentive aspects of universal credit’s design if benefits uprating exceeds wage rises so markedly. How will they ensure that the more than 1.25 million vacancies are filled when the risks of moving into work must appear particularly high at this time?

[Lord Davies of Gower (Con)]

I thank the noble Lord for his question. The Government have made a commitment in principle to the triple lock for new and basic state pensions. It is therefore a matter of fact that these will rise in line with whichever is highest: earnings, prices growth or 2.5%. For other benefits, as I said, the Secretary of State conducts a review once the relevant indices are published and makes a decision in accordance with the Social Security Administration Act 1992.