Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will make an assessment of the impact of re-introducing the universal credit temporary uplift on the cost of living.

The Government has always been clear that the £20 per week increase to Universal Credit (UC) was a temporary measure to support households whose incomes and earnings were affected by the economic shock of COVID-19.

To help with the cost of living, the Government is taking action worth around £12bn this financial year and next. This includes cutting the Universal Credit taper rate and increasing Universal Credit work allowances to make sure work pays, freezing alcohol and fuel duties to keep costs down, and providing targeted support to help vulnerable households with their energy bills and other essentials through the £500m Household Support Fund.

In addition, the Government announced last week that we are providing further financial support to help households with the rising costs of energy. Support of up to £350 will be provided to protect the majority of households from half of the forecast £700 rise in average energy bills. This support is worth £9.1bn in 2022-23 (on top of the £12bn already announced) and is composed of:

• A £200 discount for all households, delivered via their energy bill this autumn, paid back automatically over the next 5 years, spreading the increased costs of global prices over time in a way that is more manageable for households.
• A £150 non-repayable cash rebate to 80% of households to help with rising costs now, delivered as a payment from government to Local Authorities, for implementation from this April via a payment to all households in Council Tax Bands A-D.
• £144 million of discretionary funding for Local Authorities to support households who need support but are not eligible for the Council Tax Rebate.