Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether she has considered introducing a minimum income guarantee.

The Government is committed to ensuring the welfare system supports those who need it most in a way that is fiscally sustainable. The current welfare system accounts for people’s circumstances and the additional needs and costs faced by some individuals in the way that a minimum income guarantee does not.

The Government believes in a tax and welfare system that ensures it always pays to work, with the welfare system acting as a safety net for those families that need extra help. The Government has uprated benefit rates for 2025/26 in line with inflation, with 5.7 million Universal Credit households forecast to gain by an average of £150 annually. In addition, we have introduced our Universal Credit bill which legislates to rebalance Universal Credit by bringing in, for the first time ever, a sustained above inflation increase to the UC standard allowance for all claimants.