Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what recent steps he has taken to ensure that the benefit system helps people impacted by increases in (a) inflation and (b) mortgages.

The Government understands the pressures people are facing with the cost of living which is why we are providing total support of over £94bn over 2022/23 and 2023/24 to help households and individuals with their rising bills. We also increased benefits and the State Pension in April by 10.1%, in line with prices in the year to September 2022.

Over 8 million UK households on eligible means tested benefits will receive additional Cost of Living Payments totalling up to £900 in the 2023/24 financial year.

In addition, 8 million pensioner households will receive a £300 Pensioner Cost of Living Payment as a top-up to their winter fuel payment, and individuals in receipt of an eligible disability benefits will receive the £150 Disability Cost of Living Payment between 20 June and 4 July.

Support for benefit claimants with a mortgage is available through the Support for Mortgage (SMI) scheme. SMI is available to homeowners who receive an income related benefit and enables them to stay in their homes without fear of repossession.

To support mortgage borrowers with rising interest rates, on 3 April 2023, we extended the support SMI provides by offering UC claimants a loan after three months, instead of nine. We also extended SMI to in-work UC claimants so they can now receive support while working.

The amount we pay is based on the Bank of England published average mortgage rate and recently increased from 2.09% to 2.65% on 10th May 2023.

Any further changes to the interest rate will occur when the Bank of England average mortgage rate differs by 0.5 percentage points or more from the rate in payment.