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To ask the Secretary of State for Work and Pensions, if her Department will make an assessment of the cumulative impact of (a) benefits not increasing in line with the Consumer Price Index, (b) the reduction in Universal Credit in October 2021 and (c) the rise in living costs on...
To ask the Secretary of State for Work and Pensions, if her Department will make an assessment of the cumulative impact of (a) benefits not increasing in line with the Consumer Price Index, (b) the reduction in Universal Credit in October 2021 and (c) the rise in living costs on...
For the past 35 years benefits have been increased by the relevant price index for the 12 months to September and that convention was followed for 2022/23 and benefits were increased by 3.1%.
The Government has always been clear that the £20 increase to Universal Credit was a temporary measure to support those households most affected by the economic shock of Covid-19.
The Government understands the current cost of living pressures many are facing and has taken action to support and help families with a total package worth £37 billion in 2022-23. This includes the the £400 being paid to all domestic electricity customer millions of the lowest income households will get £1,200 of one-off support in total this year to help with the cost of living.
The Energy Bills Support Scheme has been doubled to a one-off £400 grant, and not recovered in future years. Energy suppliers will deliver this support to households with a domestic electricity meter over six months from October. This support is in addition to the £150 Council Tax rebate for households in England in Council Tax bands A-D, which was announced in February
Over 8 million households across the UK in receipt of eligible means tested benefits have started to receive a one-off Cost of Living Payment of £650, paid in two instalments from 14th of July.
To ask the Secretary of State for Work and Pensions, whether her Department conducted a public sector equality duty assessment on its decision to discontinue uprating Local Housing Allowance in line with the 30th percentile of market rates.
To ask the Secretary of State for Work and Pensions, whether her Department conducted a public sector equality duty assessment on its decision to discontinue uprating Local Housing Allowance in line with the 30th percentile of market rates.
Local Housing Allowance (LHA) determines the maximum financial support available for renters in the private rented sector.
The Secretary of State has complied with her duties under the Equality Act 2010 in respect of her decisions on the LHA. Copies of the equality analysis for the decisions on LHA rates for 2021-22 and 2022-23 were placed in the House of Commons Library on 26 April 2022.
To ask the Secretary of State for Work and Pensions, what factors her Department will take into account when it next makes an assessment of the potential merits uprating of benefits; and whether the energy price cap will be taken into account when making that assessment.
To ask the Secretary of State for Work and Pensions, what factors her Department will take into account when it next makes an assessment of the potential merits uprating of benefits; and whether the energy price cap will be taken into account when making that assessment.
The Secretary of State for Work and Pensions is required to undertake an annual statutory review of benefits and pensions. She uses the Consumer Prices Index (CPI) in the year to September to measure inflation and average weekly earnings for the period May to July to measure earnings. The Office for National Statistics publish these figures in October.
The Secretary of State must increase certain benefits by at least the increase in prices or earnings. If she considers it appropriate, having regard to the national economic situation and any other matters which she considers relevant, she may increase others by such a percentage(s) as she thinks fit.
Her review will commence in the autumn and her decisions will be announced to Parliament in November in the normal way.
Main estimates 2022-23. First estimates day (part one). Motion that, for the year ending with 31 March 2023, for expenditure by the Department for Work and Pensions: (1) further resources, not exceeding £70,686,826,000, be authorised for use for current purposes as set out in HC 396 of Session 2022–23, (2) further resources, not exceeding £590,758,000, be authorised for use for capital purposes as so set out, and (3) a further sum, not exceeding £71,733,460,000, be granted to Her Majesty to be issued by the Treasury out of the Consolidated Fund and applied for expenditure on the use of resources authorised by Parliament. Question deferred until 6 July. Resolved.
Main estimates 2022-23. First estimates day (part one). Motion that, for the year ending with 31 March 2023, for expenditure by the Department for Work and Pensions: (1) further resources, not exceeding £70,686,826,000, be authorised for use for current purposes as set out in HC 396 of Session 2022–23, (2)...
I understand my right hon. Friend’s point, but it is important to highlight that the £20 uplift to universal credit was only ever a temporary measure to deal with the immediate impact of coronavirus. Since then we have been monitoring the situation and providing the support that is required at particular times, and that has led to the latest package, which totals £37 billion. As I said in other responses, it is vital to highlight that, at a time of record vacancies, there is a responsibility and requirement to help people to tackle poverty by being able to get into the workplace and to progress in employment as well.
I understand my right hon. Friend’s point, but it is important to highlight that the £20 uplift to universal credit was only ever a temporary measure to deal with the immediate impact of coronavirus. Since then we have been monitoring the situation and providing the support that is required at particular times, and that has led to the latest package, which totals £37 billion. As I said in other responses, it is vital to highlight that, at a time of record vacancies, there is a responsibility and requirement to help people to tackle poverty by being able to get into the workplace and to progress in employment as well.
This year Government receipts are at a record high, and billions of pounds have rightly been announced in cost of living support. However, for those most in need—people on means-tested benefits—the support is somewhere between £1,000 and £1,200, which is roughly what they lost when the £20 universal credit uplift was withdrawn. The Joseph Rowntree Foundation has said that withdrawing the uplift would put half a million people into poverty. Citizens Advice has estimated that it has caused 2.3 million people to fall into debt. Times were tough during the covid crisis, but they are going to get tougher this year, so will the Minister look at the £20 that has been taken from universal credit, with a view to returning it by the time of the financial statement in the autumn?
To ask the Secretary of State for Work and Pensions, if she will immediately uprate benefits in line with the current high rate of inflation; and if she will make a statement.
To ask the Secretary of State for Work and Pensions, if she will immediately uprate benefits in line with the current high rate of inflation; and if she will make a statement.
The Secretary of State for Work is required by law to undertake an annual review of benefits and pensions, and Consumer Price Index in the year to September is the latest figure that she can use to allow sufficient time for the required legislative and operational changes before new rates can be introduced at the start of the new financial year.
All benefit up-rating since April 1987 has been based on the increase in the relevant price inflation index in the 12 months to the previous September.
The Secretary of State’s decisions regarding benefits and pensions uprating for this financial year were announced to Parliament on 25 November 2021. And the increase of 3.1% from April 2022 was debated and approved by both Houses of Parliament earlier this year.
To ask the Secretary of State for Work and Pensions, what assessment the Government has made of the potential effect of increasing benefits in line with living costs on levels of child poverty.
To ask the Secretary of State for Work and Pensions, what assessment the Government has made of the potential effect of increasing benefits in line with living costs on levels of child poverty.
No assessment has been made.
The Secretary of State undertakes an annual review of benefits and pensions, and the Consumer Prices Index (CPI) in the year to September this approach has been in place since 1987 is the latest figure that the Secretary of State can use to allow sufficient time for the required legislative and operational changes before new rates can be introduced at the start of the new financial year.
CPI has been the default inflation measure for the government’s statutory annual review of benefits since 2011.
CPI has a basket of goods and services that is relevant to pensioners and benefit recipients, is the target level of inflation used by the Bank of England and is an internationally recognised measure.
National Statistics on the number of children in low income are published annually in the “Households Below Average Income” publication. Latest statistics, covering up until 2020/21, on the number of children in low income in the UK can be found here: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1064433/hbai-summary-results.ods
The latest statistics show that in the UK in 2020/21 there were 200 thousand fewer children in absolute poverty, before housing costs, than in 2009/10.
This Government is committed to reducing child poverty and supporting all low-income families, and believes work is the best route out of poverty. With around 1.32 million vacancies across the UK our focus is firmly on supporting people into and to progress. Our multi-billion-pound Plan for Jobs, which has been expanded by £500 million, and Way to Work is a concerted drive across the UK to help half a million currently out of work people into jobs by the end of June 2022.
We are giving the lowest earners a pay rise by increasing the National Living Wage by 6.6% to £9.50 from April 2022, and making permanent changes to Universal Credit, worth £1000 a year on average, to two million in-work claimants.
We recognise that some people require additional support and from April, the government is providing an additional £500 million to help households with the cost of essentials, on top of what we have already provided since October 2021, bringing the total funding for this support to £1 billion.
To ask the Secretary of State for Work and Pensions, what assessment she has made of the impact of not uprating benefits in line with inflation on levels of child poverty in Birmingham, Yardley constituency.
To ask the Secretary of State for Work and Pensions, what assessment she has made of the impact of not uprating benefits in line with inflation on levels of child poverty in Birmingham, Yardley constituency.
The Secretary of State undertakes an annual review of benefits and pensions with reference to the Consumer Prices Index (CPI). All benefit up-rating since April 1987 has been based on the increase in the relevant price inflation index in the 12 months to the previous September. The relevant benefits are increasing by 3.1% from April.
The latest statistics on the number and proportion of children who are in low income families by local area, covering the seven years, 2014/15 to 2020/21, can be found in the annual publication: Children in low income families: local area statistics 2014 to 2021 - GOV.UK (www.gov.uk). In the Birmingham, Yardley constituency 32.3% (9,058) of children were in families in absolute low income before housing costs in 2021.
With almost 1.32 million vacancies across the UK, our plan for tackling poverty is firmly focussed on supporting people to move into and progress in work. Our approach is based on clear evidence about the importance of parental employment - particularly where it is full-time – in substantially reducing the risks of child poverty and in improving long-term outcomes for families and children.
The latest statistics show that in the UK in 2020/21 there were 200,000 fewer children in absolute poverty, before housing costs, than in 2009/10 and 540,000 fewer children in workless households.
This plan includes our multi-billion-pound Plan for Jobs has been expanded by £500 million and Way to Work, which is a concerted drive across the UK to help half a million currently out of work people into jobs by the end of June 2022. We have recruited around 13,500 additional work coaches who are all trained to develop a detailed knowledge of their local labour market and to offer claimants the tailored support they need to take advantage of new opportunities wherever they live in the UK.
We recognise that some people require additional support and from April, the government is providing an additional £500 million to help households with the cost of essentials, on top of what we have already provided since October 2021, bringing the total funding for this support to £1 billion. Under the first round of funding, Birmingham City Council was allocated £12,791,135.04 of funding, and they are provisionally allocated the same amount again for the extension of the fund.
To ask the Secretary of State for Work and Pensions, what assessment she has made of the potential merits of uprating benefits in line with inflation at the Spring 2022 Budget.
To ask the Secretary of State for Work and Pensions, what assessment she has made of the potential merits of uprating benefits in line with inflation at the Spring 2022 Budget.
The increase in benefits is linked to the rate of inflation to September 2021 which is published in October. This is the latest date the Secretary of State can use to deliver the required legislative and operational changes before new rates can be introduced at the start of the following financial year.
To ask the Secretary of State for Work and Pensions, what her Department's rationale is for the decision to uprate universal credit by September 2021's three per cent Consumer Price Index (CPI) benchmark when CPI is expected to exceed six per cent at the point that policy is implemented.
To ask the Secretary of State for Work and Pensions, what her Department's rationale is for the decision to uprate universal credit by September 2021's three per cent Consumer Price Index (CPI) benchmark when CPI is expected to exceed six per cent at the point that policy is implemented.
The Secretary of State undertakes an annual review of benefits and pensions. CPI in the year to September (published by the Office for National Statistics in October) is the latest figure the Secretary of State can use to allow sufficient time for the required legislative and operational changes to be made before new rates can be introduced at the start of the new financial year.
All benefit up-rating since April 1987 has been based on the increase in the relevant price inflation index in the 12 months to the previous September, as happens now. Using the same benchmark every year ensures consistency over time, allowing uprating to balance out over a number of years.
For up-rating 2022/23 the Secretary of State announced the outcome of her annual review to Parliament on 25 November 2021 and from April 2022 benefits and pensions will increase by 3.1%.
To ask the Secretary of State for Work and Pensions, what recent assessment her Department has made of the levels of child poverty in Bristol North West in the context of the decision to uprate universal credit by 3.1 per cent.
To ask the Secretary of State for Work and Pensions, what recent assessment her Department has made of the levels of child poverty in Bristol North West in the context of the decision to uprate universal credit by 3.1 per cent.
No assessment has been made.
The latest statistics on the number and proportion of children who are in low income families by local area, covering the six years, 2014/15 to 2019/20, can be found in the annual publication: Children in low income families: local area statistics 2014 to 2020 - GOV.UK (www.gov.uk)(opens in a new tab).
This Government is committed to reducing child poverty and supporting all low-income families, and believes work is the best route out of poverty. In 2019/20, children in households where all adults were in work were around six times less likely to be in absolute poverty (before housing costs) than children in a household where nobody works.
We are giving the lowest earners a pay rise by increasing the National Living Wage by 6.6% to £9.50 from April 2022, and making permanent changes to Universal Credit, worth £1000 a year on average, to two million in-work claimants.
To support low income families further, we have increased the value of Healthy Start Food Vouchers to £4.25, helping eligible low income households buy basic foods like milk, fruit and vitamins. We are also investing over £200m a year from 2022, to continue our Holiday Activities and Food programme which is already providing enriching activities and healthy meals to children in all English Local Authorities. The Chancellor has extended the Household Support Fund to £1 billion to help vulnerable families.
To ask the Secretary of State for Work and Pensions, if she will make an assessment of the potential merits of uprating universal credit in line with the ONS HCI benchmarks for low-income households when it is published in May 2022.
To ask the Secretary of State for Work and Pensions, if she will make an assessment of the potential merits of uprating universal credit in line with the ONS HCI benchmarks for low-income households when it is published in May 2022.
There are currently no plans to use Office for National Statistics Household Cost Indices to up-rate Universal Credit. The Household Cost Indices to be published by Office for National Statistics in May are experimental statistics and still in development.
The Secretary of State undertakes an annual review of benefits and pensions, and the Consumer Prices Index (CPI) in the year to September this approach has been in place since 1987 is the latest figure that the Secretary of State can use to allow sufficient time for the required legislative and operational changes before new rates can be introduced at the start of the new financial year.
CPI has been the default inflation measure for the government’s statutory annual review of benefits since 2011.
CPI has a basket of goods and services that is relevant to pensioners and benefit recipients, is the target level of inflation used by the Bank of England and is an internationally recognised measure.
To ask the Secretary of State for Work and Pensions, what steps she is taking to increase the value in real terms of social security income.
To ask the Secretary of State for Work and Pensions, what steps she is taking to increase the value in real terms of social security income.
The increase in benefits is linked to the rate of inflation in September 2021 which is published in October. This is the latest figure that the Secretary of State can use to allow sufficient time for the required legislative and operational changes before new rates can be introduced at the start of the new financial year. Benefits and pensions will rise by 3.1% in April.
The uprating was in line with inflation in the way that it has been calculated since 1987, but additional support is available, through the three-part plan that the Chancellor set out to tackle energy costs and through the household support fund.
The uprating was in line with inflation in the way that it has been calculated since 1987, but additional support is available, through the three-part plan that the Chancellor set out to tackle energy costs and through the household support fund.
As a result of my Food Insecurity Bill, the family resources survey now reports on food insecurity. The survey found that one of the key reasons, even pre-pandemic, that people could not afford to eat was that benefits were grossly inadequate. Does the Secretary of State think that the pitiful 3.1% increase in benefits, when inflation will peak at 8%, is going to make people more or less able to afford to eat?
To ask the Secretary of State for Work and Pensions, whether she plans to increase benefits rates in line with inflation from April 2022.
To ask the Secretary of State for Work and Pensions, whether she plans to increase benefits rates in line with inflation from April 2022.
The Secretary of State undertakes an annual review of benefits and pensions based on the Consumer Prices Index (CPI), which measures inflation in the year to September.
To ask the Secretary of State for Work and Pensions, what recent assessment her Department has made of the costs of uprating universal credit in line with the rate of inflation.
To ask the Secretary of State for Work and Pensions, what recent assessment her Department has made of the costs of uprating universal credit in line with the rate of inflation.
UC standard allowances will be up-rated in April-22 in line with the September-21 CPI figure of 3.1%. A full list of how each UC element will be uprated can be found at: https://researchbriefings.files.parliament.uk/documents/CBP-9439/CBP-9439.pdf.
In 2022/23 spend on UC will be around £1.1bn higher because of the uprating of the UC standard allowances and various UC elements.
To ask the Secretary of State for Work and Pensions, what assessment she has made on the impact of not uprating benefits in line with inflation on levels of child poverty in Newcastle upon Tyne Central.
To ask the Secretary of State for Work and Pensions, what assessment she has made on the impact of not uprating benefits in line with inflation on levels of child poverty in Newcastle upon Tyne Central.
I refer the Hon. Member to my response to Parliamentary Question 126529 answered 25th February 2022.
To ask the Secretary of State for Work and Pensions, what assessment her Department has made on the impact of not uprating benefits in line with inflation on the incomes of households in receipt of universal credit following reductions to that benefit in 2021.
To ask the Secretary of State for Work and Pensions, what assessment her Department has made on the impact of not uprating benefits in line with inflation on the incomes of households in receipt of universal credit following reductions to that benefit in 2021.
I refer the Hon. Member to my response to Parliamentary Question 127316 answered 25th February 2022.
To ask the Secretary of State for Work and Pensions, what assessment her Department has made on the cumulative impact on the living standards of households in receipt of universal credit of the decision not to up rate benefits in line with inflation in addition to the cut to universal...
To ask the Secretary of State for Work and Pensions, what assessment her Department has made on the cumulative impact on the living standards of households in receipt of universal credit of the decision not to up rate benefits in line with inflation in addition to the cut to universal...
I refer the Hon. Member to my response to Parliamentary Question 127316 answered 25th February 2022.
To ask the Secretary of State for Work and Pensions, what assessment she has made on the impact of not uprating benefits in line with inflation on levels of child poverty in Glasgow North East.
To ask the Secretary of State for Work and Pensions, what assessment she has made on the impact of not uprating benefits in line with inflation on levels of child poverty in Glasgow North East.
I refer the Hon. Member to my response to Parliamentary Question 126529 answered 25th February 2022.