Poverty

(asked on 7th November 2023) - View Source

Question to the Department for Work and Pensions:

To ask His Majesty's Government what steps they are taking to tackle destitution in the UK, particularly destitution experienced by children.


Answered by
Viscount Younger of Leckie Portrait
Viscount Younger of Leckie
Parliamentary Under-Secretary (Department for Work and Pensions)
This question was answered on 15th November 2023

The Government is committed to reducing poverty, including child poverty, and supporting low-income families. We will spend around £276bn through the welfare system in Great Britain in 2023/24 including around £124bn on people of working age and children, and around £152 billion on pensioners. Of this, around £79 billion will be spent on benefits to support disabled people and people with health conditions.

From April, we uprated benefit rates and State Pensions by 10.1%, and in order to increase the number of households who can benefit from these uprating decisions the benefit cap levels also increased by the same amount.

In 2021/22 there were 1.7 million fewer people in absolute poverty after housing costs than in 2009/10, including 400,000 fewer children, 1 million fewer working age adults and 200,000 fewer pensioners.

With almost one million job vacancies across the UK, our focus remains firmly on supporting people, including parents, to move into and progress in work. This approach which is based on clear evidence about the importance of employment - particularly where it is full-time - in substantially reducing the risks of poverty. The latest statistics show that in 2021/22 children living in workless households were 5 times more likely to be in absolute poverty, after housing costs, than those where all adults work.

Through the ambitious package announced at the Spring budget we are delivering measures that are designed to support people to enter work, increase their working hours and extend their working lives.

To help people into work, our core Jobcentre offer provides a range of options, including face-to-face time with work coaches and interview assistance. In addition, there is specific support targeted towards young people, people aged 50 plus and job seekers with disabilities or health issues.

To support those who are in work, from 1 April 2023, 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. In addition, the voluntary in-work progression offer started to roll-out in April 2022. It is now available in all Jobcentres across Great Britain. We estimate that around 1.4m low-paid benefit claimants will be eligible for support to progress into higher-paid work.

To further support parents into work, on 28th June 2023, the maximum monthly amounts that a parent can be reimbursed for their childcare increased by 47%, from £646.35 for one child and £1,108.04 for two or more children to £950.92 and £1,630.15 respectively. Importantly, we can now also provide even more help with upfront childcare costs when parents move into work or increase their hours. This means that a parent who needs this additional financial help can now be provided with funding towards both their first and second set of costs (or increased costs), upfront, thereby easing them into the UC childcare costs cycle.

This government understands the pressures people are facing with the cost of living which is why we are providing total support of over £94bn over 2022-23 and 2023-24 to help households and individuals with the rising bills.

Reticulating Splines