Cost of Living

(asked on 6th September 2023) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what recent assessment his Department has made of the impact of the rise in the cost of living on working families with children.


Answered by
Mims Davies Portrait
Mims Davies
Minister of State (Department for Work and Pensions)
This question was answered on 11th September 2023

No such assessments have been made.

The Government understands the pressures people, including parents, are facing with the cost of living and is taking action to help. Overall, we are providing total support of over £94bn over 2022-23 and 2023- 24 to help households and individuals with the rising cost of bills.

From April 2023, everyone who receives a state benefit or pension will have seen their benefit rates increase by 10.1%. In order to increase the number of households who can benefit from these uprating decisions, the benefit cap levels have also increased by the same amount.

To support parents who are in work, from 1 April, 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.

We recognise that high childcare costs can affect parents’ decisions to take up paid work or increase their working hours. That is why, as announced at the Spring Budget, we are investing billions in additional childcare support for parents of toddlers, investing in wraparound childcare in schools, and increasing financial support for, and expectations of, parents claiming Universal Credit.

Households on eligible means-tested benefits will get up to £900 in Cost of Living Payments. The first £301 payments have been issued to 8.3 million households, and two further payments will follow this autumn and in spring 2024. In addition, 6.4 million individuals on eligible ‘extra-costs’ disability benefits have also recently received a further £150 Disability Cost of Living Payment meaning households with more than one disabled person will receive multiple Disability Cost of Living Payments.

For people who require additional support, in England, the Household Support Fund will continue until March 2024. This year long extension allows Local Authorities in England to continue to provide discretionary support to those most in need with the significantly rising cost of living. The guidance for Local Authorities can be found here. Local Authorities have the discretion to design their own local schemes within the parameters of this guidance and grant determination that DWP have set out for the fund. Local Authorities are expected to support households in the most need, and in particular those who may not be eligible for the other support Government has recently made available, however, are nevertheless in need. The Devolved Administrations will receive consequential funding as usual to spend at their discretion.

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