Personal Income

(asked on 7th March 2023) - View Source

Question to the Department for Work and Pensions:

To ask His Majesty's Government what assessment they have made of the report by Bright Blue Building up: The future of social security, published in January; and what steps they will take to establish the minimum living income proposed in that report.


Answered by
Viscount Younger of Leckie Portrait
Viscount Younger of Leckie
Parliamentary Under-Secretary (Department for Work and Pensions)
This question was answered on 15th March 2023

No assessment has been made.

We will spend £245bn through the welfare system in 2022/23, including £111bn on people of working age and around £134 billion on pensioners. Of the total amount, around £66 billion will be spent on supporting disabled people and people with health conditions in Great Britain.

In April, we are uprating benefit rates and State Pensions by 10.1%. In order to increase the number of households who can benefit from these uprating decisions, the benefit cap levels are also increasing by the same amount.

To further support those who are in work, from 1 April 2023 the National Living Wage (NLW) will increase by 9.7% to £10.42 an hour for workers aged 23 and over - the largest ever cash increase for the NLW.

There is no objective way of deciding what an adequate level of benefit should be - each household will always have different requirements depending on their circumstances. Income–related benefit rates are not made up of separate amounts for specific items of expenditure, such as food. The Government firmly believes claimants should be free to spend their benefit as they see fit, in line with their individual needs and preferences. The Government does not consider it appropriate to introduce changes that would prioritise one particular area of household expenditure over the cost of other essential goods and services that benefit claimants have to meet.

We recognise the pressures of the rising cost of living which is why households on eligible means-tested benefits will get up to £900 in Cost of Living Payments in 2023/24. This will be split into three payments of around £300 each across the 2023/24 financial year. A separate £300 payment will be made to pensioner households on top of their Winter Fuel Payments and individuals in receipt of eligible disability benefits will receive a £150 payment. Further to this, the Energy Price Guarantee will be extended from April 2023 until the end of March 2024, meaning a typical household bill will be around £3,000 per year in Great Britain.

This support is in addition to that provided in 2022/23, including cost of living payments for people on eligible benefits, the Energy Price Guarantee and the £400 non-repayable discount to eligible households provided through the Energy Bills Support Scheme.

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