Oral Answers to Questions

Stephen Farry Excerpts

Tuesday 15th March 2022 Commons Chamber

[Helen Whately]

My hon. Friend makes an important point. There is the basic principle that people should in general be free to spend their money as they see fit. There are about 100,000 jobs in the gambling industry in this country. It is important to ensure that we protect people who are most vulnerable from exploitation, and I know that the gambling review I mentioned is looking carefully at the best way to do that.

[Stephen Farry (North Down) (Alliance)]

5. What discussions he has had with Cabinet colleagues on the potential merits of reviewing the inflationary uplift in universal credit in response to the increase in the cost of living.

[The Financial Secretary to the Treasury (Lucy Frazer)]

Details of ministerial discussions are not normally disclosed. Treasury Ministers have meetings with a wide variety of organisations in the public and private sectors as part of the process of policy development. From April, universal credit and many other benefits will be uprated by 3.1%, the rate of the consumer prices index in September 2021. In addition, the Government are providing support worth over £20 billion across this financial year and next to help families with the cost of living.

[Stephen Farry]

Millions of families across the UK, both in and out of work, depend on universal credit and other benefits. As the Minister knows, the 3.1% uprate was set in September. We are now seeing inflation of over 7%. The Joseph Rowntree Foundation, the Trussell Trust and many other organisations highlight the real jeopardy that families are now facing. They have no plan B. Indeed, families are facing cuts in real terms of over £500 over the course of the year. Surely that decision has to be reassessed in the light of changing circumstances.

[Lucy Frazer]

CPI has been the default inflation measure for the Government’s statutory annual review of benefits since 2011, as the hon. Gentleman knows, but we are fully aware of the impact on households of the cost of living. That is why we are providing £20 billion of support, whether that is through £9 billion of support to help with rising energy bills or through universal credit. As he also knows, we have cut the taper rate so that families can keep an additional £1,000 annually in their pockets.