Rising cost of living: Work and Pensions Committee writes to Chancellor for assurance that benefits will be uprated to match inflation

Wednesday 05 Oct 2022 @ 16:15
Parliamentary Committees and Public Enquiries

The Work and Pensions Committee has pressed Chancellor Kwasi Kwarteng to honour the commitment made by the former Chancellor, Rishi Sunak, to uprate benefits in April 2023 in line with the September 2022 CPI rate. When questioned in Parliament, the Chancellor stated that the Government “will make announcements about that in due course,” sparking doubts about the likelihood of uprating. The Secretary of State is required by law to review certain benefit rates annually to ensure they retain their value.

Work and Pensions Committee

The gap between the September 2021 CPI rate used to increase benefits, and the actual rate of inflation in April 2022, means that people who claim benefits including Universal Credit are already seeing a real-terms fall in the value of their income during 2022. The impact of continuing high inflation and rapidly rising prices will increase the gap between the rate at which benefits are paid and the cost of living.

The letter to Kwasi Kwarteng is part of the Committee’s continuing work looking into the impact of rising food and energy costs on people on the lowest incomes.

Chair's comment

Rt Hon Stephen Timms MP, Chair of the Work and Pensions Committee, said:

“Prices are continuing to rise at unprecedented rates and inflation is unlikely to abate soon. People on the lowest incomes are increasingly struggling to get by on the essentials and, because of the jump in inflation between September 2021 and April 2022, benefits claimants’ incomes have fallen sharply in real terms this year. The former Chancellor assured Parliament there would be a “catch up” next April.

The Chancellor must honour his predecessor’s pledge to uprate benefits in the usual manner, in line with inflation. Without it, countless families risk being pushed further into crushing poverty as they are forced to stretch the same money over higher prices.”

Further information

Channel website: http://www.parliament.uk/

Original article link: https://committees.parliament.uk/committee/164/work-and-pensions-committee/news/173349/rising-cost-of-living-work-and-pensions-committee-writes-to-chancellor-for-assurance-that-benefits-will-be-uprated-to-match-inflation/

Share this article

Latest News from
Parliamentary Committees and Public Enquiries

Government rejects Committee’s calls for increased parliamentary scrutiny of treaties

18/04/2024 13:05:00

The Public Administration and Constitutional Affairs Committee (PACAC) today publishes the Government’s response to its report on scrutiny of international treaties.

New select committee proposed to provide scrutiny of highly confidential spending

15/04/2024 13:05:00

The Public Accounts Committee (PAC) today calls for the establishment of a new select committee, to consider sound financial practice and value for money in sensitive areas which are outside the remit of the statutory Intelligence and Security Committee of Parliament.

Government should learn lessons from pandemic to improve communications and counter misinformation

12/04/2024 15:05:00

Scientists working across government should be allowed and encouraged to take on a wider public facing role in the media to combat the spread of misinformation, a report from MPs says today.

MPs call for copyright changes and new champion for freelancers to improve precarious pay and working conditions in creative industries

10/04/2024 13:05:00

Many successful musicians, actors, writers and visual artists are struggling to make a living due to gaps in copyright protection, a lack of support for freelancers and unpredictable returns from music streaming, MPs warn today.

Equity in cricket: ECB must closely monitor Yorkshire to ensure no return to ‘business as usual’, MPs say

05/04/2024 14:05:00

The ECB must closely monitor Yorkshire CCC to ensure there is no return to the ‘business as usual’ that allowed a culture of discrimination to take root and thrive at the club, MPs say today.

Government must clamp down on unregulated canine fertility clinics and unlicensed pet breeders, say MPs

05/04/2024 12:25:00

The EFRA Committee wants the Government to address the fact that more than half of the puppies entering the market come from unlicensed breeders, and is today calling for a list of licensed breeders to be made public, and a change in the licensing regulations so as to include breeders of two or more litters a year, in order to counter low welfare breeding practices and provide assurance to buyers.

Committee urges Government to hold aviation industry accountable for emissions reductions

04/04/2024 14:05:00

The Environmental Audit Committee has urged the Government to hold the aviation industry accountable for its proposed emissions reductions, as it publishes the Government’s response to its report on net zero aviation.

Shared ownership is failing to deliver an affordable route to homeownership, say MPs

28/03/2024 16:05:00

Shared ownership schemes are drastically failing to deliver an affordable route to homeownership for too many people and subject buyers to rising rents, uncapped service charges, and a disproportionate exposure to repair and maintenance costs, says the cross-party Levelling Up, Housing and Communities (LUHC) Committee in a report published today (Thursday).

MPs call for statutory sick pay reform to address inadequate financial support for workers most in need

28/03/2024 14:30:00

Statutory sick pay (SSP) is failing to provide enough support for those who most need financial help when ill and should be increased and made more widely available, MPs say today.

WIREDGOV