Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what steps she is taking to support people on legacy benefits.
In April 2020, legacy benefits were increased by £600m (1.7%). This Government will ensure that benefits retain their value by guaranteeing that for a consecutive year, benefits will increase by further £100m (0.5%) from April, in line with CPI, as part of the Government’s annual up-rating exercise.
In addition, last year, to support those on low incomes through the outbreak, we introduced a package of temporary welfare measures.
For example; 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 in 2020/21. 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 also 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.
Claimants on legacy benefits can make a claim for Universal Credit if they believe that they will be better off. Those in receipt of the Severe Disability Premium will be able to make a new claim to Universal Credit from January 2021.