The Work and Pensions Select Committee has launched a new inquiry into the UK Government’s cost of living support packages for 2022/23 and 2023/24. The cross-party Committee of MPs, chaired by Sir Stephen Timms MP, is encouraging people in receipt of cost of living support payments and those who think they should have got them to submit their views by Friday, May 12.
In response to the cost of living crisis, the UK Government announced a series of measures over 2022/223 to provide emergency financial support, including the £400 Energy Bill Support Scheme and a £150 Council Tax rebate for bands A to D. There were additional cost of living support payments for pensioners, and those already in receipt of disability or means-tested benefits.
Cost of living payments worth £900, £150 and £300 are scheduled to be made until Spring 2024, with more than eight million eligible households on means-tested benefits including Universal Credit, Pension Credit and Tax Credits expected to have received the first payment of £301 by May 17. The Committee will also look at these additional payments as part of its inquiry.
The Committee has concerns the design and delivery of the support packages is unfair and may not provide sufficient support for all low-income families who need it. By linking cost of living support to existing benefits, the emergency measures risk missing those who aren’t already claiming benefits they are entitled to. It can also act as a ‘cliff-edge’ where those who narrowly fail to meet eligibility criteria for a benefit will miss out on support entirely.
In particular, the Committee said this means that those earning £1 above the qualifying threshold on means-tested benefits such as Universal Credit and Pension Credit lose out on hundreds of pounds of support.
It said the systems and processes used to make payments can also result in people missing out on payments, for example, people subject to sanctions for Universal Credit may effectively ‘be punished twice’ by missing out on emergency support as a result.
In this new inquiry the Work and Pensions Committee will examine the UK Government’s cost of living support payments for 2022/3 and 2023/4. This will include how effectively they have supported those most in need of additional support, what lessons have been learnt from the initial roll-out and what plans are in place to improve the operation and fairness of the system.
Commenting on the inquiry, Rt Hon Sir Stephen Timms MP, Chair of the Work and Pensions Committee, said: “This is a very difficult time for people in the UK dealing with rising costs for heating, food and daily essentials. It is vital that the emergency support provided by the Government is effective in reaching those who are most vulnerable and most in need.
“Yet there are concerns that some people may be falling through the gaps in the system and missing out on critical help.”
He continued: “We have launched this inquiry to understand how cost of living support payments have worked so far and ask if improvements are needed to how they are provided.
“As the emergency support is now set to last into 2024, and potentially beyond, we need to make sure it has the right rules and systems to work effectively in the coming months.”
You can read more information about the scope of the inquiry and submit evidence online here.
To keep up to date with the outcome of this inquiry, join our Money Saving Scotland Facebook page here, follow us on Twitter @Record_Money, or subscribe to our newsletter which goes out Monday to Friday - sign up here.
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