Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what the estimated cost is to his Department of upgrading its systems to ensure that individuals with a nil payment in a qualifying month receive any cost of living payments.

Keeping the rules for this policy simple enabled the government to make over 30 million separate payments to support with the cost of living while maintaining core benefit delivery in 2022. This includes the clear rule that you must be entitled to at least 1p of a qualifying social security benefit with respect to the qualifying period to receive a Cost of Living Payment.

Including those on the benefits system, but not in payment of a qualifying benefit, would involve making payments to individuals who were ineligible during the qualifying period. The government’s published impact analysis released alongside the Social Security (Additional Payments) (No.2) Bill shows that 85% of those who received no Universal Credit award during the qualifying period for the first 2022 Cost of Living Payment of £326, had no award solely due to earnings. Of those with a no award due to earnings, most had no Universal Credit award for six assessment periods following the qualifying period solely due to earnings or left Universal Credit altogether. Paying those with financial resources available, which would make them ineligible for means-tested benefits, is not the intention of the Cost of Living Payments which are aimed at those on the lowest incomes.

You can find the impact analysis here: SocSec(AdditionalPayments)IA.pdf (parliament.uk)

Including those who received no payment of benefit would also involve making Cost of Living Payments to customers who had the payment of their benefit suspended during the qualifying period including those with suspected fraud or where there is a safeguarding risk related to a vulnerable claimant’s appointee.

The department has therefore made no such assessment of costs of upgrading its system to include individuals with a nil payment during a qualifying period.

The 2023/24 Cost of Living Payments are being delivered in three payments over the financial year to reduce the chance of someone missing out completely. To help households with the costs of essentials, including those who may not be eligible for the other support we are extending the Household Support Fund in England. The Devolved Administrations will receive Barnett funding to spend at their discretion with their local knowledge.