Secretary of State for Work and Pensions said:
“I know the last few years have been tough, with the aftershocks
of Covid and the war of Ukraine driving up inflation and cost of
living pressures. That’s exactly why we stepped in with the
biggest cost of living package in Europe, worth an average of
£3,800 per household, and this unprecedented support prevented
1.3 million people from falling into poverty in 2022/23.
“Our decisive action to more than halve inflation has allowed us
to deliver tax cuts worth an average £900 a year – putting more
money directly in the pockets of hardworking families. On top of
this, we’re bringing in the biggest ever rise to the National
Living Wage, so more people can achieve long-term financial
security through work.
“We’re also going further in April, by uprating benefits and
pensions to support millions of people on the lowest incomes and
extending the Household Support Fund to provide vital support for
those most in need. The plan is working, and we need to stick to
it to deliver a brighter future and economic security for
everyone.”
Background
- The statistics released today
relate to the financial year ending 2023, during which
inflation averaged 10%. Inflation is currently 3.4% and forecast
to fall under 2% this year by the OBR.Benefits are also
increasing by 6.7% from April as well as the state pension by
8.5% too.
- There are 1.1 million fewer people
in absolute poverty after housing costs since 2010, including
100,000 children, 200,000 pensioners, and 700,000 working aged
adults.
- The number of people in families
where someone is disabled in absolute poverty, after housing
costs, fell by 100,000 between 2021/2 and 2022/3.
- The £108 billion cost of living
support package includes:
o Boosting the state pension by 8.5% from
April for over 12 million pensioners, an extra £900 next
year for a pensioner on the new State Pension
o Increasing benefits by 6.7% from April
o Increasing the Local Housing Allowance from April,
worth an average gain of £800 a year
o Extending the Household Support Fund, backed by
£500 million to support the most vulnerable households.
o The Energy Price Guarantee, which provided a
support rate discount to all households with a domestic gas
and/or electricity contract, totalling £26.7bn including updates
and changes from 2022-2023.
o Maintaining the freeze in Fuel Duty for 2023-24.
o Increasing the maximum support available in
Universal Credit for childcare costs.
o Cost of Living payments for households on means
tested benefits, totalling £900 over 2023/24.
o £2.6bn worth of Pensioner Cost of Living Payments
over 2023/24.
o £1.2bn worth of Disability Cost of Living Payments
over 2023/24.
- We know that work is the best
route out of poverty, with children living in workless households
over 6 times more likely to be in absolute poverty after housing
costs than those where all adults work and working age adults
living in workless households were around 7 times more likely to
be in absolute poverty after housing costs than working age
adults in households where all adults work.
- There are 4.1 million more people
in work since 2010, and the number of workless households has
reduced by 1 million since in that same time.
- Our £2.5 billion Back to Work Plan,
which will break down barriers to work for the long-term
sick,unemployed and disabled, while the Chance to Work Guarantee
will allow people to try work without fear of losing their
benefits.
