The House of Commons Work and Pensions Committee has launched a new inquiry
to examine whether working-age benefit levels in the UK are
adequate to meet need. The inquiry will ask if it is possible to
reach consensus around what an “adequate” benefits system would
look like and how it would operate.
In recent years, the adequacy of current benefit levels have been
called into question. Citizens Advice have found that a record
number of people are receiving crisis support, such as help from
food banks or other charities. The impact of covid and the cost
of living crisis has also led to the Government providing
emergency financial support packages, including specific
interventions for those already receiving benefits.
The inquiry will look at the principles underpinning the benefits
system, how it assesses the level of basic needs it seeks to
support, whilst still ensuring fairness. It will look at the
processes involved with reviewing, uprating and scrutinising
benefit levels in response to the changing economic environment;
and issues relating to the administration and adequacy of
benefits, such as the five-week wait for Universal Credit. The
Committee will also examine the impact of measures designed to
incentivise work, such as the benefit cap, conditionality and the
use of sanctions.
Launching the inquiry, Chair of the Work and Pensions Committee,
Rt Hon Sir said:
“The covid pandemic and the cost of living crisis have placed
severe pressures on the benefits system and required
extra-ordinary intervention from the Government. The need for a
raft of emergency measures to support those in need of benefits
has highlighted broader questions about the adequacy of the
benefits system in guaranteeing a basic standard of living. If it
requires such frequent sticking-plaster measures, is it fit for
purpose?
“This inquiry will look at the fundamental principles governing
the benefits system to find out if they are working as they
should be. Most importantly, we will investigate if a consensus
can be reached for what an “adequate” level of support provided
by the benefit system should be.”
Terms of reference
The Committee welcomes submissions on any
or all of the following questions by Wednesday 3 May:
Adequacy of benefits
- What ‘essentials’ should working-age benefits in the UK
cover? Are current working[1]age benefit levels sufficient to
cover those needs?
- Are additional components of benefits, such as Personal
Independence Payments, sufficient to cover the costs they are
intended to cover?
- Are working-age benefit levels appropriately set to encourage
people who are able to work into work?
- What lessons can be learned in respect of benefits provision
more generally from the £20 uplift to Universal Credit,
introduced during the pandemic?
- What principles should inform the design and delivery of the
working-age benefits system (e.g. fairness, transparency,
inclusivity)?
Designing benefits policy
- What should be the purpose of working-age benefits?
- What is the role of i) the benefit cap; ii) repayments; iii)
sanctions on the adequacy of benefits?
- What is the impact of No Recourse to Public Funds
conditionality on benefit provision for affected households?
- What role could, or should, an independent body undertake in
advising Government on benefit policy?
- How does the design of benefit provision within the UK’s four
nations vary? How are recipients of working-age benefits
affected?
- Are there any international comparators the Committee should
look at for this inquiry?
Work incentives
- What impact do working-age benefits, such as Universal
Credit, New Style Job Seeker’s Allowance and New Style Employment
and Support Allowance, have on work incentives?
- What is the impact of policy interventions designed to
incentivise work, such as sanctions, on the adequacy of support
received by individuals—both monetarily, and in how they help
individuals to find work?
- What role should contributory-based benefits play in the
welfare system?
Accessibility and Administration
- What aspects associated with the administration of benefits
impact the adequacy of experience for claimants?
- What changes should be made to the administration of
working-age benefits?
- Are there any particular groups who have been ‘left-behind’
in the design of working[1]age benefits policy?
Scrutiny
- How effective is parliamentary scrutiny of benefits levels?
- What information should the Government publish to facilitate
the effective scrutiny of benefit levels? How frequently should
such information be published?
