Asked by
To ask Her Majesty’s Government what assessment they have made of
the effectiveness of the social security system in the context of
the rising cost of living.
The Parliamentary Under-Secretary of State, Foreign, Commonwealth
and Development Office and Department for Work and Pensions
() (Con)
My Lords, no specific assessment has been made. We are committed
to supporting those on low incomes and will spend around £255
billion through the welfare system in 2022-23. We are supporting
households with cost-of-living measures worth over £22 billion
this year, including changes to universal credit to make work
pay, the £9.1 billion energy package to help us with rising
energy bills and an additional £500 million to help households
with the costs of essentials.
(Lab)
My Lords, it is not enough. The welfare state was created to
provide security in retirement and to make sure that life events
did not result in destitution. Last month, the state pension went
up by 3% for the year, as did benefits for children, disabled
people and low-earners. In the real world, we all know that
inflation is heading for 10% and energy prices have gone mad. The
Governor of the Bank of England has just said that food prices
will be rising apocalyptically. Does the Minister accept that
growing numbers of both older and younger people literally do not
have enough money to buy food and pay their bills? If so, will
the Government bring forward benefit increases or find some other
way to stop people falling into modern-day destitution?
(Con)
The Government, of which I am a member, acknowledge that these
are very difficult times, particularly for pensioners and young
people with families. The uprating of benefits has been done in
September; that is how the Secretary of State uses the CPI
figure. However, I can confirm that the Government have convened
a new cost of living ministerial committee and the PM has urged
Ministers to go faster and be as creative as possible in ensuring
that the Government are doing everything they can on this
important issue. The Chancellor and Prime Minister are working
extremely closely on this and will continue to do so because they
are cognisant of the very communities that the noble Baroness is
representing.
(CB)
Is the Minister aware that 50% of people presenting in hospitals
with cardiac arrest and so on are in food poverty?
(Con)
I was not aware of that fact—that a lot of people who come to
hospitals with cardiac arrest are in food poverty. That needs to
be referred to the Department of Health to get a more detailed
answer.
(Con)
My Lords, the household support fund is an important resource for
low-income families and the £500 million increase in the budget
is very welcome, but the household support fund is due to run out
in September, just when inflation is set to peak and before the
winter fuel bills arrive. What consideration has been given to
extending the fund beyond September?
(Con)
The decision to extend the fund rests with my right honourable
friend the Chancellor. Global inflationary forces are making life
difficult for families. I take the point that my noble friend
raises but I am assured from the Chancellor’s Statement today
that we stand ready to do more as the situation evolves.
(Lab Co-op)
My Lords, one of the best ways of helping poorer pensioners is to
increase the take-up of pension credit. What are the Government
doing about the suggestions that many of us have made to increase
take-up through a new campaign, including perhaps renaming the
credit “pension boost” or “pension bonus” so that pensioners
realise that it is theirs of right and will apply to get it?
(Con)
I am always grateful to the noble Lord, Lord Foulkes, for keeping
me on my toes with this; he has done an excellent job, along with
other colleagues. I can tell him that we have undertaken a range
of actions to raise awareness of pension credits and increase
take-up. Initial internal management information suggests that
new claims for pension credit in the 12 months to December 2021
were around 30% higher compared to the previous 12 months.
Earlier this year, we directly targeted over 11 million
pensioners with information about pension credit. We will have
another awareness day, and the Minister with responsibility for
pensions is working with the BBC. I can tell the noble Lord that
we are doing everything we can to expand our efforts to increase
take-up—but I have failed miserably in getting it rebranded.
(LD)
My Lords, I am confident that the Minister, like me and many
others in this House, does not want to see children suffer as a
consequence of soaring food prices. She may have heard the same
tales from families that I have heard, of the rising cost of the
weekly food shop, with people unable to pay for the quality and
quantity of food that their family needs. One of the best ways of
dealing with that is to increase child benefit in line with
inflation and bring it forward to September. Will the Minister
please urge the Government to take that essential step?
(Con)
I thank the noble Baroness for her contribution. I will reiterate
what the Chancellor said:
“We stand ready to do more as the situation evolves.”
Child benefit does not sit with the DWP, but I will find the
person it does sit with and pass on the noble Baroness’s message.
(Con)
My Lords, would my noble friend help me with a problem I have?
Could she explain why it was appropriate to increase universal
credit by £20 a week during the Covid epidemic but not now, when
people are faced with exponential increases in their food and
energy bills? Will she tell the Chancellor that we cannot wait—we
need the money now? He got enormous credit for what he did during
Covid, but the need is greater and the Government need to act.
(Con)
I assure my noble friend and the whole House that the Chancellor
does understand and is working hard on the issue that many noble
Lords have raised today. I can tell my noble friend and others
who are impatient to get something going—I do not mean that
lightly—that the £20 uplift was a success but it was a temporary
measure, and I honestly cannot make any promises that it might be
reintroduced.
The Lord
How much time have Treasury Ministers and DWP Ministers spent
sitting, listening and talking with people who are struggling
either to eat or heat? It is first-hand evidence that really
matters; do not get it just from reports.
(Con)
I have no doubt at all that real case studies have been
presented—they have certainly been presented to my Secretary of
State. I know that everyone is impatient, and I understand that,
but the Government stand ready to do what they can once a
decision has been made. I understand that talking to real people
is the best way to learn. I was in Brighton on Thursday, opening
the new job centre. I met a lady there whose life had been
absolutely chaotic, and now she has a job with G4S and she is
cooking. We understand personal testimony.
(Lab)
My Lords, faced with the biggest fall in the real value of basic
benefits for 50 years, according to the Joseph Rowntree
Foundation, and the terrifying increase in the cost of basics, as
my noble friend has said, what are struggling parents who have
already cut back to the bone supposed to do when the Government
refuse the uplift in benefits called for widely, including on the
Government’s own Benches? What would the Minister herself do, if
she was in their shoes?
(Con)
I do not think I can answer on behalf of the people who make the
decisions but I understand the point that the noble Baroness is
raising. I know that there are families who are struggling. As I
have said, a committee has been set up—I am sorry, but noble
Lords know how government works. As I said, we stand ready.
(CB)
My Lords, one quick solution would be to have automatic enrolment
in Healthy Start vouchers. Despite the fact that the Government
have put these up, we are still running at only about 60% to 65%.
This money is there and it is doable—you could do it tonight.
(Con)
The noble Baroness raises a good point. One of the things we can
do, and must do more of, to help people in these situations is to
make sure they are claiming everything they should.
