Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what steps he is taking to reduce levels of in-work poverty in (a) Lanark and Hamilton East constituency, (b) Scotland and (c) the UK.
The latest available statistics show that working age adults living in workless households were around 7 times more likely to be in absolute poverty after housing costs than working age adults in households where all adults work.
The Government is committed to supporting individuals who are stuck in low paid work to progress, helping them increase their earnings. We have introduced a voluntary In-Work progression offer for low-paid Universal Credit customers which focuses on removing barriers to progression, such as considering skills gaps and overcoming practical barriers such as childcare costs.
To deliver effective progression support to customers, Jobcentres are being supported by a network of 37 District Progression Leads across Great Britain who work with key partners to develop local opportunities.
To help parents on Universal Credit who are moving into work or increasing their hours, the Government is providing additional support with upfront childcare costs and, from April 2024, we will increase the childcare costs that parents on Universal Credit can claim back to over £1,000 a month for one child and to over £1,700 a month for two or more children.
The Government is also increasing the number of people on Universal Credit who receive intensive support to help them earn more by raising the Administrative Earnings Threshold (AET). At the Spring Budget we announced that the AET would increase to the equivalent of 18 hours at the National Living Wage from 13 May.
From April 2024, the Government increased the National Living Wage for workers aged 21 years and over by 9.8% to £11.44 representing an increase of over £1,800 to the gross annual earnings of a full-time worker on the National Living Wage.