Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what steps she is taking to support families who are not entitled to tax credits and whose wages have not risen to manage (a) energy costs and (b) the cost of living.

The UK has a strong welfare safety net that supports people whether they are in or out of work through Universal Credit and the legacy benefits it is replacing including tax credits, Employment and Support Allowance and income-based Jobseeker's Allowance. In 2021/22, DWP will spend around £110bn on welfare benefits for people of working age.

As our economic recovery continues and with around 1.25 million vacancies across the UK there are many further opportunities for people to move into and progress in work and increase their earnings. Building on our Plan for Jobs, we launched ‘Way to Work on 27 January, a new campaign to help more people into work by matching jobseekers to the thousands of jobs available across the country.

We understand the pressures people are facing with the cost of living. We are providing support worth around £12bn this financial year and the next, to help families - changing the Universal Credit taper and work allowance which means, nearly two million households will keep, on average, £1000 a year, freezing fuel duties to keep costs down, and providing targeted support to help households with their energy bills.

For the lowest earners we are further increasing the National Living Wage by 6.6% to £9.50 from April 2022, meaning a full-time worker on the National Living Wage will see their annual earnings rise by over £1,000; we have set a target for the National Living Wage to reach two-thirds of median earnings by 2024, provided economic conditions allow.

We recognise that some people require extra support over the winter, which is why vulnerable households across the country can access the £500 million support fund to help them with essentials. The Household Support Fund provides £421 million to help vulnerable people in England with the cost of food, utilities and wider essentials. The Barnett Formula applies in the usual way, with the devolved administrations receiving almost £80 million (£41m for the Scottish Government, £25m for the Welsh Government and £14m for the NI Executive)