Due to growing demands for the government to continue financial support amongst the cost of living crisis, another cost of living payment may be announced later this year. A minister for the Department for Work and Pensions has explained the additional help for vulnerable and low income families "will be considered" and could be announced in a few months.
Guy Opperman, Minister for Employment at the DWP, says that this could be in November during the Autumn Statement from the Chancellor, as this is when the government will be sharing an update of intentions and decisions. The minister was responding to questions from Work and Pensions Committee chairman, Sir Stephen Timms.
Whilst there have already been two cost of living payments this year and another three expected before April 2024, Sir Stephen feels that this will not be enough to fill holes in people's income. He states more help is needed and is calling upon the government to indicate when it will be giving a decision about further payments for the next financial year reports Birmingham Live.
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In the Commons, Sir Stephen asked: "When does he envisage making a decision about whether the cost-of-living payments will be continued for a further year? When this year is that decision likely to be made?"
Mr Opperman replied: "These things are way and monumentally above my pay grade and are decided - as I am sure he knows, having done my job and many other jobs in Government - by the Chancellor and the Prime Minister at some stage over the course of this coming year.
"It is a fair point though that these matters will be considered, and it is clearly above my pay grade and beyond my knowledge, but obviously there is an Autumn Statement in November which would be the clear time for decisions to be telegraphed, if not decisions made."
Sir Stephen replied: "To the minister, let me just say I am grateful to him for suggesting that perhaps the Autumn Statement is when we will hear about the plans for further cost-of-living payments. I think they are going to be needed."
Sir Stephen described the cost of living payments made last year and the increased payments this year as being "crucial, but that they do not fully meet need, particularly the £150 disability support payment." He explained: "Last month, Maddy Rose of Mencap told the Select Committee that the payment is 'clearly not commensurate' with the extra costs that those eligible incur, and we have heard other strong evidence to the Committee along those lines.
"Helen Barnard of the Trussell Trust told us last month that the cost of living payment has certainly helped the families that have got it, but of course, it is a flat payment. It is not calibrated for the number of people you are trying to feed, so it has clearly gone less far if you are a family with children than if you are a single person or a couple."
He added: "The lump sum nature of the payment is problematic. Citizens Advice, speaking for many, told the Committee that increments to Universal Credit would be better than one-off payments. Our colleagues on the Treasury Committee called on the Government last December to provide monthly payments over a six-month period to give more households support at the time of their greatest need and reduce the severity of the disincentives to work.
"The Government rejected that proposal, essentially due to the limitations of the IT system, but as we know from the pandemic, monthly Universal Credit can be increased overnight. The need to meet a specific qualifying period for each payment window has led to what evidence to the Committee has described as 'a cliff edge where receiving a nil Universal Credit award one month - maybe due to a sanction or a higher salary due to backpay or a bonus - caused recipients to become ineligible for the entire cost of living support payment in that qualification period."
