Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what steps her Department is taking to support benefit claimants in meeting increased living costs.
This Government is wholly committed to supporting those on low incomes, and continue to do so through many measures, including by spending over £111 billion on welfare support for people of working age in 2021/22.
With the success of the vaccine rollout and record job vacancies, our focus now is on continuing to support people into and to progress in work. Our multi-billion-pound Plan for Jobs, which has recently been expanded by £500 million, will help people across the UK to find work and to boost their wages and prospects.
Universal Credit recipients in work will soon benefit from a reduction in the Universal Credit taper rate from 63% to 55%, and increasing the work allowance by £504 per year means that 1.9m working households will be able to keep substantially more of what they earn. These measures effectively represent a tax cut, worth around £2.2bn a year in 2022-23, for the lowest paid in society, and are combined with a rise in the National Living Wage to £9.50 per hour.
We recognise that some people may require extra support over the winter as we enter the final stages of recovery, which is why vulnerable households across the country will now be able to access a new £500 million support fund to help them with essentials. The Household Support Fund will provide £421 million to help vulnerable people in England with the cost of food, utilities and wider essentials. The Barnett Formula will apply in the usual way, with the devolved administrations receiving almost £80 million (£41m for the Scottish Government, £25m for the Welsh Government and £14m for the NI Executive), for a total of £500 million.