Social Security (Additional Payments) Bill — House of Lords, 2022-06-27
Topic: Mixed Topics
Deborah Stedman-Scott (Conservative, Centre-right): My Lords, the Government are fully aware of the acute pressures that families across the UK are under due to the rising cost of living. This is why we have brought forward this important Bill to your Lordships’ House A series of global economic shocks have led to price rises unseen in the UK for decades. As a result, families up and down the country are seeing their budgets squeezed, with many struggling to make ends meet. That is why we have decided to provide more than £15 billion of further support, targeted at those in greatest need. This is on top of the £22 billion announced previously, bringing the Government’s support for the cost of living to more than £37 billion this year. This £37 billion includes the means-tested and disability additional payments for which the Bill makes provision, as well as a one-off increase of £300 to the winter fuel payment for pensioner households, a non-repayable £400 discount in their energy bill this autumn for domestic electricity customers in Great Britain—the UK Government are working to ensure that the people of Northern Ireland receive the equivalent of this support as soon as possible—and a £150 non-repayable rebate on council tax bills for all households in bands A to D in England, to name only a few measures we have taken Although we as a Government have always been open about the fact that we cannot cover every situation or solve every problem, we are committed to going further to provide support to relieve the financial pressure people are facing. Taken together, this £37 billion package will provide at least £1,200 of additional support for the majority of households least able to afford the rising cost of living. The Bill before the House today builds on that commitment and will enable us to make additional payments targeted to those on the lowest incomes. It legislates for two additional payments which form part of our wider package to support families with the cost of living. The first is a direct cost of living payment of £650, split into two separate payments of £326 and £324, which will go to more than 8 million people receiving means-tested benefits. The second is a £150 payment to disabled people on a qualifying disability benefit. This will be paid on top of the cost of living payment for people who are eligible, and is estimated to benefit 6 million disabled people. Both new payments will be delivered by the UK Government to eligible households across the UK. Social security is a transferred matter in Northern Ireland. However, this Bill will legislate for the whole of the UK in the absence of a fully functioning Assembly and Executive. This approach has been agreed by the caretaker Minister for Communities in Northern Ireland, who has also laid a Written Statement confirming this position. The timing of both payments will differ. For the cost of living payment, the first payment of £326 for households claiming a DWP means-tested benefit will be paid from 14 July, with the second payment of £324 coming in the autumn. Payments to those claiming tax credits only will be paid later to avoid duplication. Those not eligible for the first payment in time may become eligible for the second payment if they receive a qualifying benefit in the month before the next eligibility date We have intentionally excluded the second eligibility date from the Bill to prevent increasing fraudulent applications for benefits and fraudulent reporting of changes of circumstances. The Secretary of State will lay further regulations to specify the eligibility date for the second payment; however, it will be no later than 31 October. For the disability payment, those on a qualifying disability benefit will be paid from September. Where eligibility at the qualifying date for any of these payments is established beyond the expected payment dates, people will still receive the cost of living or disability payment, albeit at a later date. Both payments are tax free and will not count towards the benefit cap or affect existing benefit awards For families who miss out on this additional support but still find themselves in additional need, the Government are providing an additional £500 million to help households on top of what has been provided since October 2021, bringing total funding for this support to £1.5 billion. In England, an additional £421 million will be used to extend the household support fund from October 2022 until March 2023. Also, the Barnett formula will provide around £79 million to the devolved Administrations This deliberately straightforward Bill, stretching to only 11 clauses, will enable us to get support to families in need swiftly and without the need for additional bureaucracy. No one eligible for these additional payments will need to fill out any forms to claim them and payments will be made automatically. We have deliberately kept the rules for these payments as simple as possible because this is the only way of ensuring that we can develop the systems and processes required to deliver them at pace I know that many of your Lordships take a particular interest in delegated powers, of which this Bill makes provision for two. The first allows the Government to set a second eligibility date for the second part of the cost of living payment; the second is to facilitate the existing overpayment and recovery procedures for the qualifying benefits, to be applied to the cost of living payment. These are powers to allow for the effective administration of the payments, particularly to protect the public purse. I note that, in its report, the DPRRC raised no concerns for the Government to respond to This Bill will make a real difference in easing the stresses being felt by people up and down the country by supporting them on the rising cost of living at this most challenging time, and doing so simply and swiftly. I commend it to the House.