We
all know that the Government will have to make some difficult decisions to
balance the books due to the cost of the package of tax cuts and increased
borrowing. It has been suggested that one way to do this
could be by freezing benefits or increasing them by less than the inflation
rate.
This week the
Prime Minister has confirmed that she will not be making a decision on whether
to raise benefits in line with inflation until November.
At a time
when we are all in the middle of a cost-of-living crisis, I am disappointed to
hear this. I do not understand why the Prime Minister and her Cabinet once
again seem to be set on picking another fight with its back benchers.
Earlier this
year, then Chancellor Rishi Sunak and former Prime Minister Boris Johnson made
a firm commitment that benefits would rise in line with inflation from next
year. I believe that when a promise is made it should be honoured.
The way in
which the current legislation works means there will always be a time lag
between the announcement in Autumn of the inflation rate, and the increase to
benefits at the beginning of the next financial year, the following April. I
understand this does cause a reduction in real time for the lowest-income
households.
In April this
year benefits were uprated by 3.1%, which was much lower than inflation at the
time of the increase, which was around 9%. This meant that benefit rates for
2022/23 were worth less in real terms than the 2021/22 rates, and this is why a
rise in line with inflation is crucial for the next year, hence the previous PM
and Chancellor’s commitment to do so.
This is a
promise that I believe should be kept and I do not understand why the new Prime
Minister is not fulfilling that commitment. It is not right that low-income
households should be hit hardest by rising inflation when we are already facing
a cost of living crisis.
If the
Government is giving tax breaks to people in work, it shouldn’t then try to
balance the books by taking money away from people on benefits.
Contrary to
what some senior figures in Government, have said, this isn’t as simple as
people needing to go out and get a job. A lot of people in Mid Cornwall on
Universal Credit are in work and this is a top-up of their wages so that they
can afford to make ends meet. I believe that it is very important that the
Government continues to support households in St Austell & Newquay in this
way.
In fact, over
the last 10 years the benefits system has undergone a radical overhaul which
ensures that work always pays. It has helped those people trapped in a cycle of
dependency on legacy benefits, such as Jobseeker’s Allowance and Employment and
Support Allowance (ESA), break free and these benefits are gradually being
phased out in favour of Universal Credit, which you can claim while working and
which does not stop abruptly once you earn a certain amount of money, but
instead tapers off to make the transition easier.
Yes, while
there will always be a small number of people who do not want to work, the vast
majority of people on benefits are also on them because they cannot work due to
disabilities, have low paid jobs, or are unable to work additional hours.
To punish the
most vulnerable people is simply wrong. Of course, we want to see more people
in work. We also want people to be able to work more hours and get better paid
jobs, and the system is there to help them do that.
I see
first-hand the fantastic work of the Department for Work and Pensions staff in
the St Austell & Newquay constituency to support people into work and more
people than ever are now in employment. Helping people into jobs is the best
way to support families in the long term.
However, we
have to acknowledge the huge pressure that everyone is feeling at the moment,
particularly for households on benefits as that is where the pressure is felt
the most.
I believe the
right thing to do will be to continue to help and support those households
through the coming months, including by fulfilling the promise to raise their
benefits in line with inflation. This is something I will continue to raise
with the Government.
If you
require my assistance with this matter or any other, please do get in touch
with my office on 01726 829379 or email – office@stevedouble.org.uk
