The Work and Pensions Committee has launched a new inquiry into
cost of living support payments.
In response to the cost of living crisis, the Government
announced a series of measures to provide emergency cost of
living support, including the Energy Bill Support Scheme and a
£150 Council Tax rebate for bands A–D. There are additional cost
of living support grants for pensioners, and those already in
receipt of disability or means-tested benefits. While initial
support consisted of one-off payments, Cost of Living Payments
are scheduled to be made until Spring 2024. It is these
additional cost of living support payments that the Committee
will examine in this inquiry.
There are concerns that 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 too.
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. This means that those earning £1 above the
qualifying threshold lose out on hundreds of pounds of support.
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 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.
The Committee has today also launched
a survey seeking views from those in
receipt of Cost of living support payments and those who think
they should have been in receipt of such payments. The survey is
open until 5pm on Sunday 16 April 2023.
Chair's comments
Rt Hon Sir 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.
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.”
Terms of Reference
The Committee would like to receive written
submissions via its
website in answer to questions in the inquiry's terms of
reference. The deadline for submissions is 23.59
on Friday 12 May.
- To what extent have the cost of living support payments been
sufficient at helping eligible households meet the cost of
essentials such as food and electricity?
- What role have the following factors played in access to the
cost of living support payments:
a) Passporting: Not already being in receipt of certain
means-tested benefits, despite being eligible, and
consequentially being prevented from accessing emergency support;
b) Cliff-edges: Not being in receipt of a certain means-tested
benefit, because households failed to meet certain qualifying
thresholds.
c) Qualifying period anomalies: issues relating to the timing of
benefit payments;
d) Receiving a nil reward on a Universal Credit payment, due to
reasons such as sanctioning; or
e) Any other technicality you believe the Committee should
investigate?
- How has the Department’s ad-hoc payment system and its design
and use benefitted or limited the delivery of cost of living
support?
- Are there any examples of international best practice in
relation to the delivery of emergency cost of living support that
the UK can learn from?
Written evidence
