Personal Income

(asked on 23rd September 2021) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, if she will publish modelling of the combined impact of the (a) end of the £20 uplift to working tax credits and universal credit, (b) rise in National Insurance contributions, (c) rise in inflation and (d) rise in energy costs on disposable income of households.


Answered by
David Rutley Portrait
David Rutley
Parliamentary Under-Secretary (Foreign, Commonwealth and Development Office)
This question was answered on 18th October 2021

No such modelling of the combined impact of the end of the £20 uplift to Working Tax Credits and Universal Credit, the rise in National Insurance contributions, rise in inflation and rise in energy costs on disposable incomes of households has been done.

There have been significant positive developments in the public health situation since the uplift was first introduced. With the success of the vaccine rollout and record job vacancies, it is right that our focus is on helping people back into work. This approach is based on clear evidence about the importance of employment, particularly where it is full-time, in substantially reducing the risks of poverty.

This Government is wholly committed to supporting those on low incomes, and continues to do so through many measures, including by increasing the living wage, and by spending over £111 billion on welfare support for people of working age in 2021/22.

We recognise that some people continue to require extra support, which is why we have introduced a £421 million Household Support Fund to help vulnerable people in England with essential household costs over the winter as the economy recovers. The Barnett Formula will apply in the usual way, with the devolved administrations receiving around £80 million (£41m for the Scottish Government, £25m for the Welsh Government and £14m for the NI Executive), for a total of £500 million.

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