Social Security Benefits: Coronavirus

(asked on 3rd December 2020) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what assessment her Department has made of the financial effect of the covid-19 outbreak on claimants on legacy benefits.


Answered by
Mims Davies Portrait
Mims Davies
Parliamentary Under-Secretary (Department for Work and Pensions)
This question was answered on 8th December 2020

To support those on low incomes through the outbreak, we introduced a package of temporary welfare measures.

We increased the Local Housing Allowance rates for Universal Credit and Housing Benefit claimants, so they now cover the lowest 30% of local rents. This increase, costing almost £1 billion, will mean 1.5 million households see an increase, on average, of £600 this year. We also increased the additional earnings disregard in Housing Benefit to ensure increases in the maximum rate of the basic element of Working Tax Credit did not impact on a claimant’s Housing Benefit award.

We legislated to allow access to Employment and Support Allowance (ESA) from day one of a claim for Covid-19 related cases and we have made it easier to access ESA by launching a portal for new style ESA online claims.

In addition to the above, legacy benefits were increased by £600m (1.7%) from April 2020 and will receive a further £100m (0.5%) increase from April 2021 as part of the Government’s annual up-rating exercise.

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