New Inquiry: Benefit levels in the UK

• Inquiry: Benefit levels in the UK
• Work and Pensions Committee

In recent years, the adequacy of current benefit levels have been called into question. Citizens Advice have found that a record number of people are receiving crisis support, such as help from food banks or other charities. The impact of covid and the cost of living crisis has also led to the Government providing emergency financial support packages, including specific interventions for those already receiving benefits.

The inquiry will look at the principles underpinning the benefits system, how it assesses the level of basic needs it seeks to support, whilst still ensuring fairness. It will look at the processes involved with reviewing, uprating and scrutinising benefit levels in response to the changing economic environment; and issues relating to the administration and adequacy of benefits, such as the five-week wait for Universal Credit. The Committee will also examine the impact of measures designed to incentivise work, such as the benefit cap, conditionality and the use of sanctions.

Chair's comment

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

“The covid pandemic and the cost of living crisis have placed severe pressures on the benefits system and required extra-ordinary intervention from the Government. The need for a raft of emergency measures to support those in need of benefits has highlighted broader questions about the adequacy of the benefits system in guaranteeing a basic standard of living. If it requires such frequent sticking-plaster measures, is it fit for purpose?

“This inquiry will look at the fundamental principles governing the benefits system to find out if they are working as they should be. Most importantly, we will investigate if a consensus can be reached for what an “adequate” level of support provided by the benefit system should be.”

Terms of reference

• Submit written evidence to the inquiry

The Committee welcomes submissions on any or all of the following questions by Wednesday 3 May.

Adequacy of benefits

• What ‘essentials’ should working-age benefits in the UK cover? Are current working[1]age benefit levels sufficient to cover those needs?
• Are additional components of benefits, such as Personal Independence Payments, sufficient to cover the costs they are intended to cover?
• Are working-age benefit levels appropriately set to encourage people who are able to work into work?
• What lessons can be learned in respect of benefits provision more generally from the £20 uplift to Universal Credit, introduced during the pandemic?
• What principles should inform the design and delivery of the working-age benefits system (e.g. fairness, transparency, inclusivity)?

Designing benefits policy

• What should be the purpose of working-age benefits?
• What is the role of i) the benefit cap; ii) repayments; iii) sanctions on the adequacy of benefits?
• What is the impact of No Recourse to Public Funds conditionality on benefit provision for affected households?
• What role could, or should, an independent body undertake in advising Government on benefit policy?
• How does the design of benefit provision within the UK’s four nations vary? How are recipients of working-age benefits affected?
• Are there any international comparators the Committee should look at for this inquiry?

Work incentives

• What impact do working-age benefits, such as Universal Credit, New Style Job Seeker’s Allowance and New Style Employment and Support Allowance, have on work incentives?
• What is the impact of policy interventions designed to incentivise work, such as sanctions, on the adequacy of support received by individuals—both monetarily, and in how they help individuals to find work?
• What role should contributory-based benefits play in the welfare system?

Accessibility and Administration

• What aspects associated with the administration of benefits impact the adequacy of experience for claimants?
• What changes should be made to the administration of working-age benefits?
• Are there any particular groups who have been ‘left-behind’ in the design of working[1]age benefits policy?

Scrutiny

• How effective is parliamentary scrutiny of benefits levels?
• What information should the Government publish to facilitate the effective scrutiny of benefit levels? How frequently should such information be published?

Signposting

We understand that the issues raised in this work may be sensitive or upsetting and the following organisations may be able to offer support or further information:   

• Samaritans – General support for everyone. Call 116 123 - 24 hours a day, every day, or email jo@samaritans.org 
• Mind – for information, advice, and support for anyone experiencing a mental health problem. Call 0300 123 3393. 
• Citizens Advice - For independent, free advice provided by a network of charities online, over the phone and in person on a wide variety of issues including benefits, work, debt, housing, family and immigration. Their Adviceline is available 9am to 5pm, Monday to Friday, by calling 0800 144 8848 (England) or 0800 702 2020 (Wales)

The Committee intends to hold a roundtable with those currently in receipt of working-age benefits to discuss the issues raised in this inquiry. Further information on how to register interest will be published on the Committee’s website and on our social media channels in the week commencing 17 April 2023.

Further information

• About Parliament: Select committees
• Visiting Parliament: Watch committees

Image: PA