Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will implement a minimum income guarantee in the UK in the context of recent significant increases in the cost of living.

The Government recognises the pressures that some households are facing with the cost of living. That is why the Government is providing support worth over £20 billion across this financial year and next that will help with the cost of living. This includes cutting the Universal Credit taper rate and increasing work allowances to make sure work pays, freezing alcohol and fuel duties to keep costs down, and the £9.1 billion package announced in February 2022 to help households with rising energy bills.

This is in addition to the annual uprating of the rates of welfare benefits which will increase by 3.1% for 22/23. And, on 1st April 2022, in line with the Government’s target, we are increasing the National Living Wage to £9.50 an hour for workers aged 23 and over.

The Government continues to support a tax and benefit system that ensures it

always pays to work, with the benefit system acting as a safety net for those families that need extra help. A flat rate income guarantee would not take into account the additional needs and costs faced by some individuals and therefore would not target taxpayer support where it is most needed.