My Lords, the Secretary of State is required to review the rates of the state pension and benefits every year. The Secretary of State will announce the outcome of her review to this House by 25 November in the normal way. The Government have committed to the triple lock for the remainder of this Parliament. It would not be right for me to prejudge the outcome of that review when the ONS is yet to publish the relevant indices.
My Lords, I thank the Minister and welcome him to the Dispatch Box and his new brief—a great place to start. Last April, when inflation was 9%, benefits were raised by just 3.1%, because that had been the CPI rate the previous September and them’s the rules. At the time, despite big pressure, Thérèse Coffey—then at DWP—said no; we must stick with the system year on year. Ministers promised that benefits would rise again by inflation next year, so it would all come out in the wash.
Now we hear that the Prime Minister is threatening to abandon that promise and is even suggesting that linking to earnings might be fairer to workers, as though we are saying to millions of workers, “Your wages are going up by less than inflation; we will fix that by cutting your universal credit and child benefit.” As well as low-paid workers, these benefits support children, sick and disabled people, the unemployed and poor pensioners. I simply do not believe that most people in this House or this country think that those people ought to be paying for the fallout from the Government’s disastrous Budget. Will the Minister please tell the House that the Government are not seriously proposing to do that?
I am very grateful for the noble Baroness’s welcome to the Front Bench. My right honourable friend the Secretary of State for Work and Pensions has a legal duty to review the rates of benefit increases once a year. She will be doing this on the same timeframe as previous years, with the latest available data. It is right that, when this review takes place, she looks at up-to-date information for the whole economy and acts accordingly, within the terms of the Social Security Administration Act 1992.
My Lords, as the chair of Feeding Britain, I wonder whether the Government could give us some advice. Over the last few weeks, we have been running out of food in our food banks and social supermarkets in 20 minutes. People who come in on later shifts do not get any food. What should we say to them when they ask why even this charity is in short supply, with so many people using it?
I take the noble Baroness’s point but can only repeat that we have to wait to see what the CPI is. The Government will make an announcement at the appropriate time.
My Lords, does the Minister agree that failure to uprate benefits in line with inflation will hit people with disabilities particularly hard? What does he have to say to the one in four disabled people who cannot afford to heat their home and to the 600,000 disabled people who have £10 a week or less to pay for food and essentials?
I am grateful for that question. We are committed to supporting disabled people, which is why we recently paid £150 to 6 million disabled people. For additional needs disability benefits and carers’ benefits, the Secretary of State conducts a review once the relevant CPI figure is published and makes a decision in accordance with the requirements of the Social Security Administration Act 1992.
My Lords, who actually knows what the inflation rate will be in the immediate future, over the next 12 months? Many people believe that the price of oil and gas, and energy generally, may fall quite sharply. They do not really know, but many believe that. Is it not wise to pause to see more clearly what is coming, before we rush into judgment on this issue?
My Lords, my noble friend has already pointed out that benefits were uprated by less than inflation this year, so we do not have to wait to know any more about that. Could the Minister explain what assessment the Government are making on the impact on poverty—both its extent and depth—if they renege on their promise to uprate benefits in line with inflation?
We have targeted additional support directly at those most in need, with a £650 cost of living payment coming in two instalments this year, in addition to the £400 energy rebate and our energy price guarantee. This will save the typical household approximately £1,000 a year, based on the current October prices.
My Lords, I recognise that benefits claimants have been coping with higher inflation than 2022’s uprating, but it is not unreasonable to ask how the Government will maintain the vital work incentive aspects of universal credit’s design if benefits uprating exceeds wage rises so markedly. How will they ensure that the more than 1.25 million vacancies are filled when the risks of moving into work must appear particularly high at this time?
I thank the noble Lord for his question. The Government have made a commitment in principle to the triple lock for new and basic state pensions. It is therefore a matter of fact that these will rise in line with whichever is highest: earnings, prices growth or 2.5%. For other benefits, as I said, the Secretary of State conducts a review once the relevant indices are published and makes a decision in accordance with the Social Security Administration Act 1992.
My Lords, there was a disturbing discussion on the “Today” programme today about the parents of disabled children. What are the Government doing about that? It sounds as though they are in deep trouble.
As I said—I am sorry, I have to repeat it—we are committed to supporting disabled people, which is why we have recently paid £150 to 6 million disabled people. As I said, for additional needs disability benefits and carers’ benefits, the Secretary of State conducts a review once the relevant CPI figure is published. I am afraid we will have to wait for that.