Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what assessment his Department has made of the impact of the disability cost of living payment on levels of poverty among disabled people.

To date, 6,400,000 Disability Cost of Living Payments have been processed by DWP.

As of 26 June 2023, over 99% of DWP claimants already eligible for the Disability Cost of Living Payment have had their payments processed.

Management Information on the Cost of Living Payments is available here: Cost of Living Payment 2023 to 2024 management information - GOV.UK (www.gov.uk).

An evaluation of the Cost of Living Payments is underway. This will seek to understand their effectiveness as a means of support for low-income and vulnerable households, including those with a disability.

This Government is committed to reducing poverty, including poverty among disabled people, and supporting low-income families, and has overseen significant falls in absolute poverty since 2009/10.

The proportion of people in families where someone is disabled who are in absolute poverty after housing costs has decreased by 1 percentage point since 2019/20, and by 3 percentage points since 2009/10. The number of people in such families has increased slightly due to an increase in the number of people in families where someone is disabled.

The Government understands the pressures people are facing with the cost of living and is taking action to help. The total support over 2022-2025 to help households with the high cost of living is £104 billion.

This includes up to £900 in Cost of Living Payments for households on eligible means-tested benefits. The most recent payment of £300 was made between 31 October 2023 and 19 November 2023 for most people who are eligible, which follows on from the £301 payment issued in April 2023 to 8.3 million households. A further payment of £299 will be made by spring 2024 for those entitled. In addition, more than eight million pensioner households across the UK will receive an additional £300 Cost of Living Payment during winter 2023-24 paid as a top up to the Winter Fuel Payment and 6.4 million individuals on eligible ‘extra-costs’ disability benefits have also received a further £150 Disability Cost of Living Payment.

Since October 2021, the Government have provided total funding of over £2 billion via the Household Support Fund to local authorities in England to enable them to continue to provide discretionary support to those most in need with the cost of essentials. The current scheme worth £842m runs until March 2024 and the devolved administrations receive consequential funding as usual to spend at their discretion. Local authorities are expected to support households in the most need, and in particular those who may not be eligible for the other support the Government recently made available, but are nevertheless in need of support. In the scheme guidance, local authorities have been strongly encouraged to explore ways in which they might use the funding to support disabled people in their area.

On 1 April 2024, the Government will increase the National Living Wage for workers aged 21 years and over by 9.8% to £11.44, representing an increase of over £1,800 to the gross annual earnings of a full-time worker on the NLW.

Subject to parliamentary approval, working-age benefits will rise by 6.7% from April 2024, in line with inflation, including Personal Independence Payment, Disability Living Allowance and Attendance Allowance. The Basic and New State Pensions will be uprated by 8.5% in line with earnings, as part of the ‘triple lock”.