Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, whether she has made an assessment of the potential impact of rising energy costs on trends in the levels of poverty.

No such assessment has been made of the potential impact of rising energy costs on levels of poverty.

The Government continues to monitor and publish trends in poverty across the UK. The latest poverty figures (2019/20) demonstrate that absolute poverty rates (both before and after housing costs) have fallen since 2009/10. In 2019/20, 14% were in absolute poverty (before housing costs), compared to 16% in 2009/10.

This Government is wholly committed to supporting those on low incomes, and continues to do so through many measures, including by spending over £110 billion on welfare support for people of working age in 2021/22.

With the success of the vaccine rollout and record job vacancies, our focus now is on continuing to support people into and to progress in work. Our multi-billion-pound Plan for Jobs, which has recently been expanded by £500 million, will help people across the UK to find work and to boost their wages and prospects.

Universal Credit recipients in work can now benefit from a reduction in the Universal Credit taper rate from 63% to 55%, and an increase in the work allowance by £500 per year meaning that working households will be able to keep substantially more of what they earn. These measures effectively represent a tax cut, worth around £2.2bn a year in 2022-23, for the lowest paid in society and will benefit almost two million of the lowest paid workers by £1000 a year on average. We are also increasing the National Living Wage by 6.6% to £9.50 an hour from April 2022.

We are helping people with energy bills through the Warm Home Discount, Cold Weather Payments and Winter Fuel Payments. The Energy Price Cap will continue to protect consumers, ensuring they pay a fair price for their energy this winter.

In addition, we recognise that some people require extra support over the winter, through the final stages of recovery, which is why vulnerable households across the country are now able to access a new £500 million support fund to help them with essentials. The Household Support Fund is providing £421 million to help vulnerable people in England. The Barnett Formula applies in the usual way, with the devolved administrations receiving almost £80 million (£41m for the Scottish Government, £25m for the Welsh Government and £14m for the NI Executive), for a total of £500 million. The Barnett Formula applies in the usual way, with the devolved administrations receiving almost £80 million (£41m for the Scottish Government, £25m for the Welsh Government and £14m for the NI Executive), for a total of £500 million.