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To ask His Majesty's Government what assessment they have made of the potential impact of ending the Household Support Fund on 31 March on (1) the number of people experiencing destitution, and (2) wider public services including the NHS, social care, and homelessness services.
To ask His Majesty's Government what assessment they have made of the potential impact of ending the Household Support Fund on 31 March on (1) the number of people experiencing destitution, and (2) wider public services including the NHS, social care, and homelessness services.
The current Household Support Fund runs from April 2023 until the end of March 2024, and the Government continues to keep all its existing programmes under review in the usual way.
The Government is committed to reducing poverty and supporting low-income families.
Our approach to tackling poverty is based on clear evidence that parental employment, particularly where its full time, reduces the risk of poverty. In the financial year 21/22, children living in households where all adults work were around five times less likely to be in absolute poverty after housing costs than those living in workless households.
The Government is putting significant additional support in place for those on the lowest incomes from April. Subject to Parliamentary approval, working age benefits will rise by 6.7% while the Basic and New State Pensions will be uprated by 8.5% in line with earnings, as part of the ‘triple lock”.
To further support low-income households with increasing rent costs, the Government will raise Local Housing Allowance rates to the 30th percentile of local market rents, benefitting 1.6 million low-income households by on average £800 a year in 24/25. Additionally, the Government will increase the National Living Wage for workers aged 21 years and over by 9.8% to £11.44 representing an increase of over £1,800 to the gross annual earnings of a full-time worker on the National Living Wage.
I thank the Minister for his Answer. Of course, all increases will be welcome after years of freezes and below-inflation rises. However, the key issue is that universal credit levels today are based simply on the result of historical precedent and subsequent political assessments of what the Government can afford. Does the Minister agree that it is time for an objective, independent assessment based on evidence of real need and actual costs? Does he agree with the Rowntree analysis that the universal credit standard rate falls well below what is needed to afford basic essentials?
I thank the Minister for his Answer. Of course, all increases will be welcome after years of freezes and below-inflation rises. However, the key issue is that universal credit levels today are based simply on the result of historical precedent and subsequent political assessments of what the Government can afford. Does the Minister agree that it is time for an objective, independent assessment based on evidence of real need and actual costs? Does he agree with the Rowntree analysis that the universal credit standard rate falls well below what is needed to afford basic essentials?
We are certainly aware of the severe difficulties in some cases that households are experiencing. Our way of dealing with this—we are aware of the report, as I said earlier—is that, following the Autumn Statement announcement, measures directly aimed at helping households with cost of living pressures in the coming year 2023-24 are now better targeted to low-income households. Support provided from the £3,000 EPG and cost of living payment is on average more generous for households in the bottom four income deciles than our £2,500 cap alone.
To ask His Majesty’s Government what assessment they have made of the report by the Trussell Trust and Joseph Rowntree Foundation An Essentials Guarantee: Reforming Universal Credit to ensure we can all afford the essentials in hard times, published on 27 February; and in particular, the recommendation to introduce an ‘Essentials Guarantee’ to support those living in relative poverty.
To ask His Majesty’s Government what assessment they have made of the report by the Trussell Trust and Joseph Rowntree Foundation An Essentials Guarantee: Reforming Universal Credit to ensure we can all afford the essentials in hard times, published on 27 February; and in particular, the recommendation to introduce an ‘Essentials Guarantee’ to support those living in relative poverty.
My Lords, the department is aware of the report, but no formal assessment has been made. We have a long-term approach to tackling poverty and supporting people on lower incomes. The Government are increasing support for low-income and vulnerable households, with welfare expenditure forecast to rise from £251.8 billion in 2022-23 to £275.6 billion in 2023-24. As the Spring Statement made clear, the focus is on supporting workforce participation, helping people move into work and higher earnings.
My Lords, I draw the Minister’s attention to recommendation (e) in the report, which I hope is less contentious. It mentions the importance of the Government getting the new fairer funding review correct, as it affects every council’s ability to plan and provide for services for the most vulnerable and poorest in society. Can she update the House on progress with that important review, because at the moment, councils do not know how much funding they will get from 2020, how it will be distributed and the means of delivery?
My Lords, I draw the Minister’s attention to recommendation (e) in the report, which I hope is less contentious. It mentions the importance of the Government getting the new fairer funding review correct, as it affects every council’s ability to plan and provide for services for the most vulnerable and poorest in society. Can she update the House on progress with that important review, because at the moment, councils do not know how much funding they will get from 2020, how it will be distributed and the means of delivery?
I have to tell the noble Baroness that that is not exactly my area, but I will take away what she asked. It is important to say that we are doing all we can to ensure that we are delivering more from our services and continue to increase spending—certainly from the Department for Work and Pensions—to support those in need.