Income Support

Treasury written question – answered at on 28 March 2022.

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Photo of Rachael Maskell Rachael Maskell Labour/Co-operative, York Central

To ask the Chancellor of the Exchequer, if he will introduce a minimum income guarantee for all people in receipt of state benefits and ensure that it is linked to inflation.

Photo of Simon Clarke Simon Clarke The Chief Secretary to the Treasury

The Government understands the pressures people are facing with the cost of living. These are global challenges, but the Government is providing support to families worth over £22 billion in 2022-23 to help with these pressures.

This includes cutting the Universal Credit taper rate and increasing work allowances to make sure work pays, freezing alcohol duties to keep costs down, and providing millions of households with up to £350 to help with rising energy bills. At the Spring Statement, the Chancellor went further, announcing an increase to the annual National Insurance Primary Threshold and Lower Profits Limit to £12,570, a cut to fuel duty, and an additional £500m to help the most vulnerable with the cost of essentials through the Household Support Fund. And, on 1st April 2022, in line with the Government’s target, we are increasing the National Living Wage to £9.50 an hour for workers aged 23 and over.

The Government continues to support a tax and benefit system that ensures it always pays to work, with the benefit system acting as a safety net for those families that need extra help. A flat rate income guarantee would not take into account the additional needs and costs faced by some individuals and therefore would not target taxpayer support where it is most needed.

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