Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will undertake a monthly impact assessment of the implications for low income households of cost of living rises.

The Government understands the pressures people, in particular those on low incomes are facing with the cost of living because of high inflation. We are listening to people’s concerns and are providing significant support for the cost of living, worth over £22bn in 22/23. This has included reducing the Universal Credit (UC) taper rate from 63% to 55%, and increased UC work allowances by £500 p.a. to make work pay. In the recent Spring Statement 2022, the Government also announced an increase to the annual National insurance Primary Threshold and Lower Profits Limit to £12,570, and an additional £500m to help those most in need with the cost of essentials through the Household Support Fund.

At each fiscal event HM Treasury has regularly published distributional analysis of the impact of tax, welfare and spending decisions on households. Distributional analysis published at Spring Statement 2022 shows that in 2024-25, the tax, welfare and spending decisions made since Spending Round 2019 will have benefitted the poorest households most (as a percentage of income).