Social Security Benefits: Poverty

(asked on 27th June 2023) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what fiscal steps he is taking to (a) tackle the impact of the benefit cap on low-income families and (b) help prevent increases in child poverty.


Answered by
Guy Opperman Portrait
Guy Opperman
This question was answered on 3rd July 2023

The Government is committed to reducing child poverty and supporting low-income families. We will spend around £276bn through the welfare system in Great Britain in 2023/24 including around £124bn on people of working age and their children.

The Secretary of State reviewed the benefit cap levels in November 2022 and decided they should be increased from April 2023. The Secretary of State has a statutory obligation to review the benefit cap levels at least once every five years.

With 1.05 million job vacancies across the UK, our focus remains firmly on supporting individuals, including parents, to move into, and progress in work, an approach which is based on clear evidence about the importance of employment - particularly where it is full-time - in substantially reducing the risks of child poverty and in improving long-term outcomes for families and children. The latest statistics show that in 2021/22 children living in workless households were around 5 times more likely to be in absolute poverty after housing costs than those where all adults work.

To support those who are in work, from 1 April 2023, the National Living Wage (NLW) increased by 9.7% to £10.42 an hour for workers aged 23 and over - the largest ever cash increase for the NLW.

At the Spring Budget, the Chancellor announced an ambitious package of measures designed to support people wherever they live in the UK to enter work, increase their working hours and extend their working lives.

The Government recognises that high childcare costs can affect parents’ decisions to take up paid work or increase their working hours which is why, from 28 June, the changes to the Universal Credit (UC) childcare element announced in Spring Budget 2023 will provide generous additional financial support to parents moving into paid work and/or increasing their working hours.

This government understands the pressures people are facing with the cost of living which is why we are providing total support of over £94bn over 2022-23 and 2023-24 to help households and individuals with the rising bills.

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