9
Acknowledged
We welcome the decision by the Government to exempt the cost of living payments from...
Recommendation
We welcome the decision by the Government to exempt the cost of living payments from the benefit cap so that those most in need of support can receive it. This decision suggests, however, that the Department knows that the cap is set too low to effectively cover households’ now spiralling costs of living. Regardless of the changes made when the Fixed Term Parliaments Act was repealed, it was clearly not the intention of the original legislation that the benefit cap go more than six years without even being reviewed, let alone adjusted for inflation. The benefit cap should be reviewed urgently—and certainly no later than the end of 2022—to ensure it is in line with average household incomes and increasing rent/energy/food costs—the results of this review should be published. Furthermore, the cap must be uprated this year. (Paragraph 39) Deductions
Government Response Summary
The government acknowledges the recommendation for reviewing the benefit cap and states that the Secretary of State is reviewing further advice on this.
Government Response
Acknowledged
Government Response
Acknowledged
HM Government
Acknowledged
The cost-of-living payment is intended to be a one-off payment to help with the rising costs. It is not a permanent benefit, which is why this payment is exempt from the benefit cap. As the Secretary of State said to the Committee, she is reviewing further advice on this.
Source
Committee
Work and Pensions Committee
Inquiry
The cost of living
Report
Second Report - The Cost of Living
27 Jul 2022
HC 129
Addressee Bodies
Department for Work and Pensions
Timeline
Recommendation age
3.8 yrs
Report published
27 Jul 2022