Campaign reply - Will you call for a stronger social security system so we can all afford the essentials?

Thank you for contacting me about the Trussell Trust’s Social Security Campaign.

 

I understand constituents’ concerns regarding rising costs, and I know that ministerial colleagues are determined to help people with the cost of living.

 

I am committed to supporting those on low incomes and this country has a robust social security system to do so. Over £242 billion will be spent through the welfare system in Great Britain in 2022/23, including £108 billion on people of working age and over £134 billion on pensioners.

In addition, the Government is taking decisive and unprecedented action to support households with the cost of living. 

Under the Energy Price Guarantee (EPG), the typical household will pay no more than £2,500 on their energy bill until April 2023. Thereafter, the price cap will rise so that the typical household will pay no more than £3,000 until April 2024. The EPG will save the average household a further £500 and mean they will not have to face energy bills of £6,000 this winter and next.

In addition to the EPG, I strongly welcome the Chancellor’s announcement during the Autumn Statement 2022 that the Government will increase its cost-of-living support package by an additional £12 billion, taking the total from £37 to £49 billion.

This increase means that, in addition to the Cost-of-Living Payments already being made this year, the Government will provide extra one-off payments of £900 for the eight million households on means-tested benefits, a second £300 Pensioner Cost-of-Living Payment, and another £150 for disability benefit recipients. The Chancellor also announced that the Government will provide £1 billion of extra funding by extending the Household Support Fund for another year, bringing the total of the Fund to £2.5 billion. 

I also welcome the Chancellor's announcement that both benefits and the State Pension will increase by 10.1 per cent for 2023/24, in line with inflation. This represents the biggest cash increase in the State Pension ever and an average uplift for households receiving Universal Credit of around £600.

Debt deductions for Universal Credit overpayments are part of the DWP’s obligation to protect public funds and to ensure that, wherever possible, benefit overpayments are recovered. I know that Ministers want to discharge this duty without causing undue financial hardship. That is why the Government has an established route by which anyone experiencing difficulties with repayments is encouraged to contact DWP Debt Management in order to negotiate a possible reduction in their rate of repayment, or a temporary suspension of repayment, depending on financial circumstances.

 

The Department has to balance the amount that can be deducted with the protections that deductions offer claimants. Lowering the maximum deduction rate further would result in less essential deductions such as Child Maintenance being made. The Government has reduced the maximum deduction rate twice in the past three years – from 40 per cent to 30 per cent in 2019, and further to 25 per cent in 2021. Ministers believe this strikes the right balance of ensuring priority debts and social obligations are met whilst enabling claimants to retain more of their award to meet day-to-day needs.

 

Again, thank you for taking the time to write. If you require any further assistance, then please do not hesitate to get in touch.