Devolved ministers from Scotland, Wales and Northern Ireland have written to the Secretary of State for Work and Pensions expressing their ‘deep concern’ about the impact the cost of living crisis is having on poverty levels, particularly child poverty. The ministers are calling on Chloe Smith MP to apply a £25 weekly emergency uplift to all means-tested benefits
The Minister for Social Security and Local Government, Ben Macpherson MSP, the Minister for Communities in the Northern Ireland Assembly and the Minister for Social Justice in the Welsh Government are also asking the new Department Work and Pensions (DWP) boss to implement a comprehensive benefit take-up strategy and abolish the benefit cap and the two-child limit.
The letter from October 6 states: “We are deeply concerned about the impact the cost of living crisis is having on poverty levels, particularly child poverty. Many people are struggling to afford even the basic essentials, including buying food, heating their homes and paying rising bills.”
It continues: “All of the available evidence shows that it is households with the lowest incomes who are being hit the hardest by this crisis, with more of their incomes being spent on covering the basics. This in turn impacts on people’s health and wellbeing, and exacerbates existing inequalities. This cannot continue.”
The letter highlights that while some financial support has been provided it will “not be nearly enough to meet the increases in basic costs” which are largely due to rising interest rates and soaring inflation.
The ministers have suggested three proposals which could ease some of the pressures on the most financially vulnerable households.
Implement a comprehensive benefit take-up strategy
“The devolved Governments are doing what we can to put money into the pockets of the most vulnerable families and we are delivering excellent results with our benefit take-up projects,” the letter states.
However, the three ministers suggest that maximising take-up of social security benefits must be a priority for all Governments.
They said: “We urge you to take similar action and urgently develop and implement a comprehensive benefit take-up strategy.”
Apply an emergency uplift of £25 to all means-tested benefits
In April 2020 the UK Government introduced a £20 per week uplift in Universal Credit to help people during the pandemic.
The ministers said: “Despite repeated calls from the public, political and other representatives the uplift was removed in October 2021. Removal of this additional support has undoubtedly contributed to the hardship that people are now experiencing.
“Therefore, we strongly urge you to immediately reinstate the uplift to Universal Credit and, in recognition of the increasing costs individuals and families are experiencing, to increase it to £25 per week. This uplift should also be extended to all legacy benefits.”
Abolish the benefit cap and the two-child limit
The letter states: “The evidence of the impact of both polices is clear, they are pushing households with multiple children deeper into poverty. Removing the benefit cap and the two-child limit would offer meaningful, targeted support to families and help provide children the best start in life.”
The Child Poverty Action Group (CPAG) estimates that a couple with two children subject to the benefit cap are, on average, currently £150 a week below the poverty line.
The ministers suggest that removing the cap would put an average of an additional £65 per week into their pockets.
They said: “Abolishing the two-child limit would also mean additional support for families of around £56 per week for each additional child after the first two. These measures would represent a critical financial lifeline in the current cost of living crisis.”
The letter ends: “You and other Westminster Ministers have the responsibility to utilise your powers to ensure that we can all provide the best possible help and support to those suffering the most significant impacts during this crisis.”
You can read the letter in full here.
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