Question to the HM Treasury:

To ask Her Majesty's Government what plans they have, if any, to increase Universal Credit payments in the event that energy bills increase.

The Government recognises the recent increase in wholesale global gas prices will be a cause of concern for consumers, businesses, and energy suppliers across the UK.

There is a wide range of Government support in place to support consumers with their energy costs. The Energy Price Cap has been shielding millions of consumers from the volatility in the wholesale markets, and the Government is supporting low income and fuel poor households with their energy bills in a number of ways, the total value of this support being £2.5 billion a year including:

• The Warm Home Discount, which provides eligible households with a £140 discount.

• Winter Fuel Payments and Cold Weather Payments, which help ensure those most vulnerable are better able to heat their homes over the colder months.

There is also support available this winter through the £500m Household Support Fund, which helps those in greatest need with the cost of essentials over the coming months.

The Government has also taken decisive action to support low-income working households on Universal Credit by cutting the taper rate from 63p to 55p and increasing work allowances by £500 a year. These changes are effectively a tax cut for low paid households on Universal Credit worth £2.2 billion in 2022-23 and mean that 1.9 million households will keep on average around an extra £1,000 on an annual basis.

In the long-term, the best way to reduce energy bills for households is to invest in energy efficiency. The Government has allocated over £500 million to Local Authorities this year for the Social Housing Decarbonisation Fund and the Sustainable Warmth programmes. These schemes will help reduce low-income households’ energy use through efficiency improvements, which are estimated to save participants an average of £350-450 per year on their energy bills. At the Spending Review, an additional £1.8bn was confirmed to accelerate these programmes over the next three years.