Cost of living support payments

Work and Pensions Committee Closed Inquiry
Opened: 3 Apr 2023 Closed: 28 Feb 2024 Parliament page
The Work and Pensions Select Committee is conducting an inquiry looking into the Government’s cost of living support packages for 2022–23 and 2023–24. Individuals, researchers and organisations with a view of the terms of reference are welcome to submit evidence to the Committee. When introducing the newest cost of living … Read more
10 Recommendations
5 Conclusions
1 Report
2 Oral sessions
1 Letter
2 Events
Activity timeline 7 events
21 Feb
2024
Correspondence
25 Jan
2024
Report published
14 Nov
2023
Report published
5 Jul
2023
Oral evidence
5 Jul
2023
Formal meeting (oral evidence session) · Room 15, Palace of Westminster
7 Jun
2023
Oral evidence
7 Jun
2023
Formal meeting (oral evidence session) · Room 15, Palace of Westminster
Oral evidence sessions 2 sessions
5 Jul 2023
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Work and Pensions Committee
Dr Jennifer Robson · Kroeger College, Carleton University (Canada) Dr Miroslav Štefánik · Institute of Economic Research Slovak Academy of Sciences Katy Roberts · Department for Work and Pensions Mims Davies MP · Department for Work and Pensions Nagesh Reddy · Department for Work and Pensions Neil Couling · Department for Work and Pensions Professor Thomas Gerlinger · Bielefeld University (Germany)
7 Jun 2023
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Work and Pensions Committee
Fran Bennett · University of Oxford Helen Barnard · The Trussell Trust Maddy Rose · Royal Mencap Society Maxwell Marlow · Adam Smith Institute Morgan Wild · Citizens Advice Richard Hunt · Leicestershire County Council Sally West · Age UK
Title HC No. Published Items Response
First Report - Cost of Living Support Payments HC 143 14 Nov 2023 15 Responded
Recommendations & Conclusions
15 results
1 Conclusion Accepted
First Report - Cost of Living Supp…
Automated payment system provides swift support but is limited in targeting specific group needs.
We welcome the automated nature of the payment system, which enabled the swift issue of cash support to many of those most in need. However, we recognise that it is limited in its ability to target payments and therefore meet … Read more
Government Response
The government defends its existing automated payment system as quick and effective, highlighting millions of payments made, annual benefit upratings, and existing targeted payments for disabled people and pensioners.
Department for Work and Pensions
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2 Conclusion Accepted
First Report - Cost of Living Supp…
Cost of living payment eligibility creates an unfair "cliff edge" income gap.
We are concerned by the cliff edge nature of the cost of living payments which creates a fundamentally unfair income gap where a person is financially penalised for earning just over the qualifying threshold, being in receipt of a sanction … Read more
Government Response
The government acknowledges the cliff-edge issue but states that delivering payments in three separate instalments reduces the chance of missing out, and highlights the flexible Household Support Fund as an alternative for those ineligible.
Department for Work and Pensions
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3 Conclusion Deferred
First Report - Cost of Living Supp…
Issue missed cost of living payments to UC claimants paid non-monthly via mop-up system.
People who receive Universal Credit and are paid on a non-monthly basis, even if their earnings follow a consistent pattern, can fail to meet the eligibility criteria in a qualifying period. We recognise that the Government has taken steps to … Read more
Government Response
The government defers its response to this recommendation, stating it will be taken in conjunction with recommendation 4.
Department for Work and Pensions
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4 Recommendation Rejected
First Report - Cost of Living Supp…
Change cost of living payment eligibility for UC claimants with nil awards in qualifying periods.
The Government should change the eligibility for the final cost of living payment in 2023/24 and for any possible future payments so that Universal Credit (UC) claimants who receive a nil UC award in the qualifying period, but received a … Read more
Government Response
The government rejects changing eligibility for nil-award Universal Credit claimants, citing that substantial changes would introduce complexity, risk delays, fraud, or error, and that DWP IT systems cannot distinguish reasons for nil awards.
Department for Work and Pensions
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5 Recommendation Rejected
First Report - Cost of Living Supp…
Consider adding Housing Benefit as a qualifying benefit for future cost of living payments.
We are concerned that support payments do not reach all low-income households in receipt of benefits as some households only receive housing benefit. The Government should consider adding Housing Benefit as a qualifying benefit for future cost of living support … Read more
Government Response
The government rejects adding Housing Benefit as a qualifying benefit, explaining it is not an income-replacement benefit and administrative complexities would prevent quick, accurate payment delivery, instead pointing to the Household Support Fund.
Department for Work and Pensions
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6 Recommendation Rejected
First Report - Cost of Living Supp…
Clarify Household Support Fund guidance for local authorities assisting those with no recourse to public funds.
We are concerned that some people with no recourse to public funds could be denied Household Support Fund (HSF) support from local authorities, despite potentially being eligible for such support, due to a lack of clarity in the guidance. We … Read more
Government Response
The government rejects clarifying Household Support Fund guidance for those with No Recourse to Public Funds, stating that local authorities already have powers for care needs and the variety of factors involved means a definitive list or explicit guidance would not be appropriate.
Department for Work and Pensions
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7 Conclusion Accepted
First Report - Cost of Living Supp…
Household Support Fund provides uneven support and suffers from low awareness.
The Household Support Fund has enabled the provision of support to vulnerable households who are not eligible for the cost of living support payments or for whom the payments are not sufficient. However, we are concerned by the uneven nature … Read more
Government Response
The government defends the Household Support Fund's flexible design, stating it allows local authorities to respond to local need, and highlights current efforts like an Awareness Week, leaflets, and knowledge-sharing events to improve communication and accessibility.
Department for Work and Pensions
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8 Recommendation Accepted
First Report - Cost of Living Supp…
Maintain Household Support Fund, improve communication and application accessibility for vulnerable groups.
If the Government continues to issue cost of living support payments in the next financial year, it should maintain the Household Support Fund as it is an important safety net for those ineligible for these payments and other means tested … Read more
Government Response
The government states the Household Support Fund (HSF) is under review for future years and highlights existing measures, such as local authorities being required to provide application-based schemes and comply with the Equality Act to ensure accessible advertising and support.
Department for Work and Pensions
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9 Recommendation Rejected
First Report - Cost of Living Supp…
Bring forward and publish evaluation of cost of living payments before financial year 2024/25.
The cost of living payments have had an important impact and boosted the finances of low-income households. However, one-off payments were not a sufficient response to the scale of the issue, and many people in receipt of the payments still … Read more
Government Response
The government rejects bringing forward the full evaluation of Cost of Living Payments, stating it would compromise robustness, but confirms an evaluation is underway with fieldwork in early 2024 and early findings feeding into policy decisions.
Department for Work and Pensions
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10 Recommendation Acknowledged
First Report - Cost of Living Supp…
Analyse support for families with children and account for family size in future payments.
While the UK support has been relatively generous compared to other countries, other countries have issued specific support for families and children, which the UK Government has not. Given the flat rate nature of the cost of living payments, the … Read more
Government Response
The government acknowledges that Cost of Living Payments were not proportional to family size but were simplified for quick delivery, and points to the ongoing evaluation of COLPs and the Household Support Fund as avenues for understanding support for families.
Department for Work and Pensions
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11 Recommendation Accepted
First Report - Cost of Living Supp…
Devise and implement policy addressing unfairness for low-income pensioners missing Pension Credit.
We commend the Government’s efforts to promote Pension Credit to those entitled to it, though there is still more to do to increase take-up as we remarked on in our July 2022 Cost of Living report. We remain concerned that … Read more
Government Response
The government describes its ongoing substantial nationwide campaign to promote Pension Credit to those eligible but states its immediate focus remains on encouraging eligible individuals to claim it, without committing to a new policy for those who just miss out.
Department for Work and Pensions
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12 Recommendation Deferred
First Report - Cost of Living Supp…
Set out detailed reasoning for the £150 cost of living payment for disabled people.
The cost of living payments do not provide a suitable level of support for vulnerable groups who are impacted to a greater extent by the cost of living crisis, such as those with disabilities, and do not cover the additional … Read more
Government Response
The government deflected the recommendation, stating it should be considered in conjunction with recommendation 13, without providing the requested detailed reasoning for the £150 disability payment.
Department for Work and Pensions
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13 Recommendation Rejected
First Report - Cost of Living Supp…
Increase future cost of living financial support for disabled people proportionate to additional costs.
Should there be future cost of living payments, or similar ad hoc support, the Government should increase the financial support for those with disabilities in proportion to the additional costs that they incur.
Government Response
The government rejected the recommendation for future disability cost of living payments to be proportional to additional costs, explaining its current approach prioritizes higher payments for those on means-tested benefits due to their vulnerability.
Department for Work and Pensions
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14 Recommendation Rejected
First Report - Cost of Living Supp…
Clarify legal position on uprating Universal Credit while maintaining one-off payments for legacy benefits.
It is clear that an uplift of regular working age benefits received would be more beneficial than ad-hoc cost of living support payments as it would better enable households to budget and reduce the chance of a recipient losing out … Read more
Government Response
The government rejected the recommendation to uprate Universal Credit separately and maintain one-off payments only for legacy benefits, citing the statutory annual review duty and the breach of equal treatment requirements if differentiated.
Department for Work and Pensions
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15 Conclusion Rejected
First Report - Cost of Living Supp…
Announce future cost of living payment dates in advance to improve household budgeting.
We recognise that the Government is concerned that publishing exact payment windows could encourage fraud and disincentivise people from taking work opportunities. However, the irregular nature of these payments, along with the uncertainty of when they will be received, continues … Read more
Government Response
The government rejected the recommendation to announce future cost of living payment dates in advance, stating that doing so would implicitly reveal qualifying dates, which they aim to avoid to prevent fraud and maintain work incentives.
Department for Work and Pensions
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Government Response AI assessment · 15 of 10 classified
Accepted 5
Acknowledged 1
Deferred 2
Rejected 7
Total 10 recs + 5 conclusions
Correspondence 1 letter
21 Feb 2024 Correspondence with the Minister for Employment relating to Cost of living support payments
Parliament page