The Department for Work and Pensions (DWP) has rejected a call from a Scottish Liberal Democrat MP to bring forward all cost of living payments to the start of April. Payments of £900, £150 and £300 for part of the UK Government’s £37 billion package of support aimed at helping households through the cost of living crisis during 2023/24.
During the Second Reading of the Social Security (Additional Payments) (No.2) Bill on Monday, Wendy Chamberlain proposed an amendment to the Bill, on behalf of the Liberal Democrat Party, which would see all eligible claimants receive their payments “no later than 1 April 2023”. The North East Fife MP told the House of Commons: “Additional support for struggling families is much welcomed, and I am pretty sure that no one in the Committee would oppose the provision of more help through the Bill.
“What my amendment seeks to do is ensure that those struggling families receive that support now, rather than having to wait. It has been a long cold winter, and we are expecting another cold snap this week, so it certainly is not over yet.”
Ms Chamberlain highlighted that while the UK Government’s £2,500 Energy Price Guarantee has protected families from the worst increases, some households have seen their bills increase “two, three or possibly even four times in the past year”.
She said: “Hundreds of thousands, if not millions, of others are walking a tightrope - just managing payments, sometimes late, by making other cutbacks: being cold, eating less, or reducing travel. If we are not just to get those families back on an even keel but to help them to stay there, it is vital for the full cost of living payment that the Government wish to make to be made immediately - especially, I would argue, in the face of the impending increase in the Energy Price Guarantee.”
A campaign led by consumer champion is calling on Chancellor Jeremy Hunt not to increase the £2,500 Energy Price Guarantee to £3,000 on April 1 as it will result in millions of households facing gas and electricity bill hikes of 20 per cent, some £500 for those with typical usage.
On Friday, the financial journalist told BBC Radio 4’s Today programme that he is “85 per cent” certain the guarantee will not be increased.
Secretary of State for the Department for Energy Security and Net Zero, Grant Shapps is due to appear on The Martin Lewis Money Show Live on Tuesday night to answer energy questions. The programme starts at 8pm on STV.
DWP Minister for Social Mobility, Youth and Progression, Mims Davies MP took the opportunity to clear up any confusion about the ‘April 30‘ reference in relation to qualifying periods in the Bill. She explained that the qualifying days for each of the cost of living payments will be specified in secondary regulations, which will help to “minimise work disincentives and fraud risks”.
Referring to Ms Chamberlain’s amendment proposal, she explained that April 30 are backstop dates. This means the latest possible qualification dates that could be set out in regulations.
Ms Davies said: “Bringing those dates forward could not achieve the amendment’s desired effect, although I understand the sentiment.
“In any event, making all cost of living payments by 1 April 2023 would not support our ambition to spread the support through 2023 and into 2024.
“In fact, we have increased the number of payments from those made in 2022, having listened and engaged with the feedback from MPs across the land.
“This ensures that as many people as possible will qualify for a payment at some point, including those who become entitled to a qualifying benefit later in the year and those whose earnings fluctuate from month to month.
“Making all the payments in one lump sum would mean that more people miss out.”
She added: “I understand the hon. Lady’s point, but I must be robust in saying that we simply cannot do what she suggests, as it runs contrary to what we should be doing in spreading out support for the most vulnerable.
“It is also the total opposite of the Select Committee’s request for more payments.”
Ms Chamberlain later withdrew her amendment proposal.
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