Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what assessment he has made of the potential impact of the Autumn Statement 2023 on levels of poverty among benefit claimants.

We are providing support to households to help with the high cost of living worth £104 billion over 2022-23 to 2024-25. This includes, subject to Parliamentary approval, raising working age benefits by 6.7% and State pensions by 8.5% from April next year on top of this year’s 10.1% uprating for all State pensions and benefits.

To support low-income households with increasing rent costs, the government will also raise Local Housing Allowance rates to the 30th percentile of local market rents for private renters from April 2024. This will benefit 1.6m low-income households by on average £800 a year in 24/25.

We are also, from April, increasing 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 National Living Wage.

We estimate that in 2024/5 around 20 million families will benefit from the uprating of DWP and HMRC benefits in Great Britain. This will include around 8 million pensioner and around 11 million working age families and around 1 million mixed age couples.

In 2024/25, around 5.5 million Universal Credit families are forecast to benefit from uprating with an average annual gain for a family on Universal Credit estimated to be £470 (equivalent to an increase of around £39 per month), however gains will vary depending on the elements received by different family types. An assessment of the benefit uprating policy has been published here.

On average, households in the poorest income deciles are gaining the most in cash terms and as a percentage of net income in 2023-24 as a result of government policies announced at Autumn Statement 2022. This Government has overseen significant falls in absolute poverty since 2009/10. In 2021/22 there were 1.7 million fewer people in absolute poverty after housing costs than in 2009/10, including 400,000 fewer children and 1 million fewer working age adults.