Spring Statement Affordability Test

Lord Cormack Excerpts

Wednesday 23rd March 2022 Lords Chamber

[Baroness Penn (Con)]

I believe the noble Lord is referring to the care cap that is coming into place. That is a result of previous work by the Dilnot commission, which it builds on. I understand that noble Lords on the other side think that the cap is set at too high a level rather than too low. I think that is not the right characterisation of the Government’s policy.

[Lord Cormack (Con)]

My Lords, I refer my noble friend to the admirable question asked by my noble friend Lord Forsyth: did the Government conduct an affordability test on the impact on the cost of living, and, if so, what form did it take?

[Baroness Penn (Con)]

As I say, my Lords, we have provided analysis in the round of tax and spending decisions taken by the Government since the 2019 spending review. That analysis shows that the combined impact of those decisions is progressive, with the largest burden placed on higher-income households as a proportion of their income.