Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what steps his Department is taking to ensure support schemes keep pace with inflation.

The Secretary of State for Work and Pensions is required by law to undertake an annual review of State Pension and benefit rates. Most of these will increase by 6.7% from April 2024, in line with the increase in the Consumer Prices Index in the year to September 2023. The basic State Pension, full rate of the new State Pension and Standard Minimum Guarantee in Pension Credit will increase by 8.5%, in line with the growth in average weekly earning in the year to May-July 2023. The increase to all these State Pensions and benefits in April 2023 was 10.1%, in line with the increase in the Consumer Prices Index in the year to September 2022 and the Government’s manifesto commitment to the triple lock for the new and basic State Pensions.

The Government will also be investing £1.2 billion restoring Local Housing Allowance rates to the 30th percentile of local market rents. This significant investment will ensure 1.6 million low-income private renters will gain on average, nearly £800 per year in additional help towards their rental costs in 2024/25.

From April 2024, the National Living Wage is set to increase by 9.8% to £11.44 an hour. This represents an increase of over £1,800 to the annual earnings of a full-time worker on the National Living Wage and is expected to benefit over 2.7 million low-paid workers. The equivalent increase in April 2023 was 9.7%.

The Government understand the pressures people have been facing with the cost of living and is committed to reducing poverty and supporting low-income families. This commitment is demonstrated by the package of additional support for the most vulnerable provided by one of the largest support packages in Europe. This includes the current Household Support Fund, which is worth £842 million and runs until 31 March 2024 in England. The Devolved Administrations receive Barnett Formula funding as a result of this, bringing the total investment to £1 billion.

Taken together, including the measures outlined above, support to households to help with the high cost of living in total amounts to £104 billion over the period 2022/23 to 2024/25.