New inquiry: Are cost of living support payments reaching everyone in need of help?

3 April 2023

The Work and Pensions Committee has launched a new inquiry into cost of living support payments.

• Inquiry: Cost of living support payments 
• Survey: Cost of living support payments: open until 5pm on Sunday 16 April 2023.
• Work and Pensions Committee

In response to the cost of living crisis, the Government announced a series of measures to provide emergency cost of living support, including the Energy Bill Support Scheme and a £150 Council Tax rebate for bands A–D. There are additional cost of living support grants for pensioners, and those already in receipt of disability or means tested benefits. While initial support consisted of one-off payments, Cost of Living Payments are scheduled to be made until Spring 2024. It is these additional cost of living support payments that the Committee will examine in this inquiry.

There are concerns that the design and delivery of the support packages is unfair and may not provide sufficient support for all low-income families who need it. By linking cost of living support to existing benefits, the emergency measures risk missing those who aren’t already claiming benefits they are entitled too. It can also act as a ‘cliff-edge’ where those who narrowly fail to meet eligibility criteria for a benefit will miss out on support entirely. This means that those earning £1 above the qualifying threshold lose out on hundreds of pounds of support.

The systems and processes used to make payments can also result in people missing out on payments, for example, people subject to sanctions for Universal Credit may effectively be punished twice by missing out on emergency support as a result.

In this new inquiry the Work and Pensions Committee will examine the Government’s cost of living support payments for 2022/3 and 2023/4. This will include how effectively they have supported those most in need of additional support, what lessons have been learnt from the initial roll-out and what plans are in place to improve the operation and fairness of the system.

The Committee has today also launched a survey seeking views from those in receipt of Cost of living support payments and those who think they should have been in receipt of such payments. The survey is open until 5pm on Sunday 16 April 2023.

Chair's comments

Rt Hon Sir Stephen Timms MP, Chair of the Work and Pensions Committee, said:

“This is a very difficult time for people in the UK dealing with rising costs for heating, food and daily essentials. It is vital that the emergency support provided by the Government is effective in reaching those who are most vulnerable and most in need. Yet there are concerns that some people may be falling through the gaps in the system and missing out on critical help.

We have launched this inquiry to understand how cost of living support payments have worked so far and ask if improvements are needed to how they are provided. As the emergency support is now set to last into 2024, and potentially beyond, we need to make sure it has the right rules and systems to work effectively in the coming months.”

Terms of Reference 

The Committee would like to receive written submissions via its website in answer to questions in the inquiry's terms of reference. The deadline for submissions is 23.59 on Friday 12 May. 

1. To what extent have the cost of living support payments been sufficient at helping eligible households meet the cost of essentials such as food and electricity?
2. What role have the following factors played in access to the cost of living support payments:

a) Passporting: Not already being in receipt of certain means-tested benefits, despite being eligible, and consequentially being prevented from accessing emergency support;

b) Cliff-edges: Not being in receipt of a certain means-tested benefit, because households failed to meet certain qualifying thresholds.

c) Qualifying period anomalies: issues relating to the timing of benefit payments;

d) Receiving a nil reward on a Universal Credit payment, due to reasons such as sanctioning; or

e) Any other technicality you believe the Committee should investigate?

4. How has the Department’s ad-hoc payment system and its design and use benefitted or limited the delivery of cost of living support?
5. Are there any examples of international best practice in relation to the delivery of emergency cost of living support that the UK can learn from?

Written evidence

• Submit your written evidence here.

Further information

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