Social Security System: Rising Cost of Living

Baroness Sherlock Excerpts

Tuesday 17th May 2022 Lords Chamber

Asked by

[Baroness Sherlock]

To ask Her Majesty’s Government what assessment they have made of the effectiveness of the social security system in the context of the rising cost of living.

[The Parliamentary Under-Secretary of State, Foreign, Commonwealth and Development Office and Department for Work and Pensions (Baroness Stedman-Scott) (Con)]

My Lords, no specific assessment has been made. We are committed to supporting those on low incomes and will spend around £255 billion through the welfare system in 2022-23. We are supporting households with cost-of-living measures worth over £22 billion this year, including changes to universal credit to make work pay, the £9.1 billion energy package to help us with rising energy bills and an additional £500 million to help households with the costs of essentials.

[Baroness Sherlock (Lab)]

My Lords, it is not enough. The welfare state was created to provide security in retirement and to make sure that life events did not result in destitution. Last month, the state pension went up by 3% for the year, as did benefits for children, disabled people and low-earners. In the real world, we all know that inflation is heading for 10% and energy prices have gone mad. The Governor of the Bank of England has just said that food prices will be rising apocalyptically. Does the Minister accept that growing numbers of both older and younger people literally do not have enough money to buy food and pay their bills? If so, will the Government bring forward benefit increases or find some other way to stop people falling into modern-day destitution?

[Baroness Stedman-Scott (Con)]

The Government, of which I am a member, acknowledge that these are very difficult times, particularly for pensioners and young people with families. The uprating of benefits has been done in September; that is how the Secretary of State uses the CPI figure. However, I can confirm that the Government have convened a new cost of living ministerial committee and the PM has urged Ministers to go faster and be as creative as possible in ensuring that the Government are doing everything they can on this important issue. The Chancellor and Prime Minister are working extremely closely on this and will continue to do so because they are cognisant of the very communities that the noble Baroness is representing.