Universal Credit

(asked on 29th November 2021) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what assessment she has made of the potential impact of ending the £20 uplift to universal credit on levels of foodbank use in the UK.


Answered by
David Rutley Portrait
David Rutley
Parliamentary Under-Secretary (Foreign, Commonwealth and Development Office)
This question was answered on 3rd December 2021

The uplift to Universal Credit was a temporary measure, that is why an assessment has not been completed on its withdrawal.

Foodbanks are independent, charitable organisations and the Department for Work and Pensions does not have any role in their operation. There is no consistent and accurate measure of food bank usage at a constituency or national level. We understand the data limitations in this area, and thus from April 2021 we introduced a set of questions into the Family Resources Survey (FRS) to measure and track food bank usage. The first results of these questions are due to be published in March 2023 subject to usual quality assurance. These questions will allow us to gauge where people in food security are seeking help and over time will allow us to build a time series on the scale of food bank usage.

This Government is wholly committed to supporting low-income families, including through spending over £110 billion on welfare support for people of working age in 2021/22 and by increasing the National Living Wage by 6.6% to £9.50 from April 2022.

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.

In addition, Universal Credit recipients in work will soon benefit from a reduction in the Universal Credit taper rate from 63% to 55%, while eligible in-work claimants will also benefit from changes to the Work Allowance. These measures represent, for the lowest paid in society, an effective tax cut of around £2.2 Billion in 2022-23, and will benefit almost two million of the lowest paid workers by £1000 a year on average.

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.

To support low income families further we have also increased the value of Healthy Start Food Vouchers from £3.10 to £4.25, helping eligible low income households buy basic foods like milk, fruit and vitamins, and we are investing over £200m a year from 2022 to continue our Holiday Activities and Food programme, which is already providing enriching activities and healthy meals to children in all Local Authorities in England.

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