Social Security and Pensions

Debate between Richard Fuller and Guy Opperman

Monday 6th February 2023 Commons Chamber

[Guy Opperman]

My hon. Friend is right: these are difficult times for everyone, but the Government have decided to provide the maximum amount of support to the most vulnerable. That is why we are uprating the benefits on an ongoing basis. We also provided a £37 billion cost of living support package last spring and an energy price support package last September, and in 2023-24 we will provide a package that includes uprated support for the most vulnerable and a further winter fuel payment.

The order increases the personal and standard allowance of universal credit by 10.1%. The monthly universal credit work allowance—the amount that a person can earn before their universal credit payment is affected—will also increase in April by 10.1% to £379 for those also receiving support for housing costs, and to £631 per month for those not receiving support for housing costs. The order also increases by 10.1% statutory adoption pay, statutory maternity pay, statutory paternity pay, statutory shared parental pay, statutory shared parental bereavement pay, and statutory sick pay. In addition, in April, the carer’s allowance will increase by 10.1% to £76.75 per week. Unpaid carers also have access to support through universal credit, pension credit and housing benefit, all of which include amounts for carers. For a single person, the carer’s element in universal credit will increase to £185.86 a month from April, and the carer’s premium in pension credit and other income-related benefits will increase to £42.75 a week.

[Richard Fuller (North East Bedfordshire) (Con)]

Can the Minister explain to the House—not right now, but perhaps a little later—the interaction between the changes in carer’s allowance and the number of hours that carers can work, particularly in the light of the very welcome increases in the national living wage? What has been the Government’s thinking on that in recent times?

[Guy Opperman]

My hon. Friend asks a legitimate question: how can we improve the situation for carers who wish to work more hours, long term? It would be wrong to give full disclosure of all discussions, but I will work out what I can say about that in my closing remarks, and I am happy to engage with him privately on the subject as well.

Under the benefit cap regulations, there will be an increase to the benefit cap of 10.1%. That will ensure that all households see an increase in their benefit following uprating. The national benefit cap will be £22,020 a year for couples and lone parents, and £14,753 for single people. For households living in Greater London, it will be £25,323 a year for couples and lone parents, and £16,967 for single people.

Under the Guaranteed Minimum Pensions Increase Order 2023, there will be an increase of 3% paid by occupational pension schemes, which means that that part of the GMP will increase by 3% from April 2023. The 3% cap strikes a balance, I suggest, between providing members with some protection against inflation and not increasing scheme costs beyond what can be afforded. I commend the regulations to the House.