The Chair of the Work and Pensions Committee, Sir Stephen Timms MP, has said that more cost of living payments will be needed in 2024 to help millions of people on a low income cope with the ongoing economic crisis. The East Ham Labour MP pressed Employment Minister Guy Opperman on when the UK Government plans to reveal when it will make a decision about extending cost of living payments into next year.
Mr Opperman said it was “monumentally above my pay grade” to announce when a decision would be made to extend the support, but suggested it could be announced by Chancellor Jeremy Hunt in the Autumn Statement, due to be made in November.
The former Pensions Minister raised the question during a recent debate in the House of Commons on Department for Work and Pensions (DWP) spending. He also warned MPs that unless there is another “full uprating” of State Pension and benefits next year, food bank usage will continue to rise.
In April this year, State Pension and benefits increased by 10.1 per cent - an uprating based on the September 2022 Consumer Price Index (CPI) inflation rate.
Sir Stephen asked Mr Opperman: “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?”
The DWP Minister replied: “He will know, because he and I have worked together for many years - and I would like to say it is together - and he will know that I have been a humble junior functionary at the Department for Work and Pensions for a very long period of time, never to rise any higher.
“There have been three female secretaries of state who I have had the pleasure of serving prior to the present Secretary of State [Mel Stride]. I think I am on my seventh secretary of state.
“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 responded: “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.”
In his closing statement, Mr Opperman said: “I believe that we are tackling inflation to help manage the cost of living. We are providing extra support. The economic trends, as shown by the labour market statistics, are heading in the right direction and, with the Government’s ongoing significant package of cost of living support, that is worth over £94 billion in excess of the rises to state pension and benefits.
“We are protecting those most in need from the worst impact of rising prices by putting more pounds in people’s pockets, and I commend these estimates to the House.”
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