Cost of Living: Financial Support for Disabled People

Debate between Tom Pursglove and Mark Hendrick

Monday 22nd May 2023 Westminster Hall

[The Minister for Disabled People, Health and Work (Tom Pursglove)]

It is a pleasure to serve under your chairmanship, Sir Mark. May I begin by thanking the hon. Member for Battersea (Marsha De Cordova) for introducing this debate? We do not always agree on everything, but she undoubtedly speaks with great passion about these issues. I also thank Abigail and Katy for the work they have done to bring forward these petitions.

I thank Members from across the House for their heartfelt and thorough contributions. There is no question that any right hon. Member or hon. Member is not acutely mindful of the enormous pressures and challenges that people feel in the current climate. It is right that we come together and debate these issues. We debated them last week and are doing so again. I have no doubt there will be further opportunities going forward.

I want to set out the picture on disability benefit spending more generally to put the debate in context. Then I will go on to explain the package of support we have in place and the work that is ongoing to respond to the many issues that have been raised today. It is worth saying that we will spend around £77 billion in 2023-24 on benefits to support disabled people and people with health conditions, which is around 3.1% of GDP. In 2023-24, spending on PIP, DLA and attendance allowance will be £12.5 billion higher in real terms than in 2010. Total disability benefit spend in 2027-28 is forecast to be over £39.8 billion higher in real terms compared to 2010. This is despite Scottish disability spend being devolved in 2020-21.

That is not to minimise for a moment the challenges that households face in the current climate, particularly those that include members who are disabled. The difficulties they are experiencing at this time, particularly around energy affordability and the cost of living, are pressing. All of us are familiar with the root causes of costs being higher. The situation in Ukraine is a significant one, and it has resulted undoubtedly in energy market volatility. That has translated into households here in the UK being put under real strain.

I said this last week, but it is important to get it on the record again: we as Ministers are not complacent. We are adamant that vulnerable energy users must be able to afford their bills, and we recognise that there are inevitably higher costs associated with many of those households’ usage. That is why the Chancellor and the Prime Minister acted decisively to introduce the cost of living payments and provide structured support worth over £94 billion in 2022-23 and 2023-24. That is an average of over £3,300 per UK household.

As was mentioned in a number of contributions, we have also uprated benefits in line with inflation at 10.1%, which was the right thing to do. We listened to the views of disabled people, their representative groups, Members in this House and our constituents across the country, regardless of which party we represent. We concluded, having listened to the compelling arguments, that the right thing to do was to uprate benefits in line with inflation.

The Government prioritised paying cost of living payments worth up to £1,100 for some households during the 2022-23 financial year. The Department for Work and Pensions can be proud of the work that officials did to help us to ensure that the payment hit people’s bank accounts. Some 30 million cost of living payments were paid during the course of last year, including 8 million households receiving up to £650 across two payments, over 8 million pensioner households —[Interruption.]

[Sir Mark Hendrick (in the Chair)]

Order. As I said earlier, the sitting is suspended for 15 minutes for a Division in the House. If there is another Division, we will suspend for 25 minutes.

--- Later in debate ---

[Sir Mark Hendrick (in the Chair)]

Order. The sitting is resumed. The debate may now continue until 7.45 pm.

[Tom Pursglove]

Resuming from where I left off, over 8 million pensioner households received an additional £300 on top of their winter fuel payments in 2022-23, and 6 million who were entitled to an extra cost benefit, such as a personal independence payment or an adult disability payment in Scotland, received £150.

The wider package of support for the financial year included the energy price guarantee, which capped fuel bills at £2,500 for average use. Colleagues from across the House will recognise that that support has been extended until next month. The package also included the £400 off domestic electricity bills received by every household in Great Britain, and the council tax reductions for bands A to D in England.

One part of our overall package that I think is particularly important is the household support fund, which we extended twice. Including support for the devolved Administrations in terms of consequential funding, the total has been £1.5 billion since October 2021. It is important discretionary help, which is designed specifically to allow local authorities to work with people in their communities whose particular needs are not necessarily able to be met through the wider structured package of support. This sensible, discretionary support can be provided locally on a case-by-case basis to the people who need it. It is a significant and important part of the support package, which reflects the fact that people’s circumstances are often complicated and do not fit into neat boxes.

I will turn to cost of living support for 2023-24. Again, colleagues will recall the Chancellor setting out in the autumn statement our intentions for the support package for the year ahead. Eight million low-income families on means-tested benefits will get £900. My Department has already delivered 99% of the first cost of living payment of £301 to the 7.3 million households in receipt of a means-tested benefit such as universal credit. That represents payments to a value of £2.2 billion.

The hon. Member for Motherwell and Wishaw (Marion Fellows) suggested that not much has changed since we met last week. However, I am able to provide one update that last Friday, my hon. Friend the Minister for Social Mobility, Youth and Progression laid in Parliament the regulations that will allow us to pay an additional £150 to more than 6.5 million people on an extra cost disability benefit. Those payments will land in people’s bank accounts starting from 20 June. That is important help, and I am pleased that we are now able to give certainty around the timetable. We have also laid regulations that will allow pensioner households to get an additional £300 on top of their annual winter fuel payment this winter, as they did last year.

I recognise that one of the petitions focused specifically on the disability cost of living payment, and arguments about its adequacy. I want to reiterate what I said in the debate last week, because the statistics on this are quite significant. I want to stress that the rationale for each of the cost of living payments is different. The Government believe it is right that the highest amount goes to those on means-tested benefits, given that those on the lowest incomes are most vulnerable to rises in the cost of living. Having said that, we estimate that nearly 60% of individuals who receive an extra cost disability benefit will receive additional support through the means-tested benefit payment. Over 85% will receive either or both of the means-tested and pensioner benefits, which goes in some ways to the heart of the debate.

I assure hon. Members that we are absolutely committed to ensuring that disabled people and people with health conditions receive the support that they need. That is why in 2022-23 we spent nearly £69 billion in real terms on benefits to support disabled people and people with health conditions. We will continue that throughout 2023-24 by uprating disability benefits in line with last September’s CPI inflation figure, as I have set out, meaning that we expect to spend around £78 billion in 2023-24—3.1% of GDP.