Poverty

(asked on 13th January 2022) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what steps she is taking through the welfare system to tackle (a) food and (b) fuel poverty.


Answered by
David Rutley Portrait
David Rutley
Parliamentary Under-Secretary (Foreign, Commonwealth and Development Office)
This question was answered on 19th January 2022

This Government is wholly committed to supporting low-income families, including through spending over £110 billion on welfare support for people of working age in 2021/22 and by increasing the National Living Wage by 6.6% to £9.50 from April 2022.

With the success of the vaccine rollout and record job vacancies, our focus now is on continuing to support people into and to progress in work. Our multi-billion-pound Plan for Jobs, which has recently been expanded by £500 million, will help people across the UK to find work and to boost their wages and prospects.

In addition, Universal Credit recipients in work are now benefitting from a reduction in the Universal Credit taper rate from 63% to 55%, while eligible in-work claimants can also benefit from changes to the Work Allowance. These measures represent, for the lowest paid in society, an effective tax cut of around £2.2 Billion in 2022-23, and are now benefitting almost two million of the lowest paid workers by £1000 a year on average.

We recognise that some people require extra support over the winter, which is why vulnerable households across the country can access a new £500 million support fund to help them with essentials. The Household Support Fund provides £421 million to help vulnerable people in England with the cost of food, utilities and wider essentials. The Barnett Formula applies in the usual way, with the devolved administrations receiving almost £80 million.

To support low income families further we have increased the value of Healthy Start Food Vouchers from £3.10 to £4.25, helping eligible low income households buy basic foods like milk, fruit and vitamins, and we are also investing over £200m a year from 2022 to continue our Holiday Activities and Food programme which is already providing enriching activities and healthy meals to children in all English Local Authorities.

DWP administers the Cold Weather Payment scheme, which provides £25 extra a week to vulnerable people in receipt of certain income-related benefits, when the average temperature has been recorded, or is forecast to be, 0 degrees Celsius or below over 7 consecutive days at the weather station linked to an eligible person’s postcode.

Some customers in receipt of Universal Credit may be entitled to a Winter Fuel Payment if they or their partner reached state pension age on or before 26 September 2021.

The Department for Business, Energy and Industrial Strategy administers the Warm Home Discount Scheme for low income and vulnerable customers. It gives direct assistance with their energy costs. Energy suppliers provide rebates on energy bills currently worth £140 per household each winter. This year (2021/22), the scheme will be worth £354 million.

The Energy Price Cap will continue to protect consumers, ensuring they pay a fair price for their energy this winter.

Further detail on all three schemes can be found at:

https://www.gov.uk/winter-fuel-payment

https://www.gov.uk/cold-weather-payment

https://www.gov.uk/the-warm-home-discount-scheme

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