DWP Launches New Evaluation to Assess Impact of Cost of Living Payments on Low-Income and Vulnerable Groups

Portrait of Lydia Amazouz, a young woman with dark hair tied back, wearing glasses and a striped blue and white shirt, against a solid coral background.
By Lydia Amazouz Published on 6 May 2024 13:46
Sign for the Department for Work and Pensions (DWP) at the entrance of Caxton House
DWP Launches New Evaluation to Assess Impact of Cost of Living Payments on Low-Income and Vulnerable Groups - © en.econostrum.info

Following Labour MP Navendu Mishra's question about whether an assessment of the “average financial impact per claimant of the discontinuation of Disability Cost of Living Payments” had been made, the Department for Work and Pensions (DWP) confirmed that an “evaluation of the Cost of Living Payments is underway.”

DWP Initiates Evaluation of Cost of Living Payments Impacting Disability Benefits

In 2022 and 2023, one-time payments totaling £150 were given to over six million people who were receiving disability benefits, such as Disability Living Allowance (DLA), Attendance Allowance, Adult Disability Payment (ADP), and Personal Independence Payment (PIP). The lump amount was a part of the financial package provided by the UK government to assist individuals with disabilities in overcoming the ongoing issue caused by rising living expenses.

The Minister for Disabled People, Health and Work, Mims Davies MP, answered in a written responce last week, stating that “no estimate has been made about the discontinuation of Disability Cost of Living Payments.” She also mentioned that the Department of Work and Pensions (DWP) estimates that during the 2023–2024 fiscal year, approximately 60% of disabled people will also receive £900 in means-tested Cost of Living Payments.

Ms Davies stated: “As of April 2024, the rate of inflation has slowed, and the Government has also implemented uprating to benefits to reflect increased costs. We also increased extra costs disability benefits by 10.1 per cent from April 2023 and by 6.7 per cent from April 2024 in line with the Consumer Price Index.

“For 2023/24 we estimate that nearly 60 per cent of individuals who received an extra costs disability benefit would have received the means-tested benefit Cost of Living Payments, worth up to £900.

Over 85 per cent would have received either or both of the means-tested and the £300 Pensioner Cost of Living Payment.

“An evaluation of the Cost of Living Payments is underway. This will seek to understand their effectiveness as a means of support for low-income and vulnerable households.”

Petition for Cost of Living

Proposals in an online petition seeking additional cost-of-living assistance for low-income and vulnerable households in the 2024–2025 fiscal year were recently denied by the DWP.

Around 8 million homes in Great Britain received the £299 last Cost of Living Payment in February, but petition founder William Conway thinks extra assistance is still required this year.

Will told the Daily Record: “The cost of living isn't going away and will still be here throughout 24/25. Many households are now faced with higher bills not just in the energy sector but groceries, broadband, mobile and public transport.”

The DWP said that it has provided £104 billion over 2022-25 to help with the cost of living, but added that it currently has “no plans to extend cost of living payments” it will “keep all measures under constant review”.

The DWP's written response has been posted on the petitions-parliament website and includes: “The Government has demonstrated its commitment to supporting the most vulnerable by providing one of the largest support packages in Europe.

“Taken together, support to households to help with the high cost of living is worth £104 billion over 2022/23 to 2024/25, which includes, among other support, two rounds of means-tested Cost of Living Payments, Disability Cost of Living Payments and Pensioner Cost of Living Payments over 2022/23 and 2023/24. Targeting support for the most vulnerable and those on the lowest incomes.”

It added: “Cost of Living Payments enabled us to target immediate further support during the rising cost of living pressures. Delivering lump sum payments provided assistance quickly, reflecting our commitment to giving direct and timely relief to those who need it most.”

The ‘Extend cost of living payments to low income households beyond February 2024’ petition was signed more than 19,300 times. The Petitions Committee would consider it for debate in Parliament once it reaches 100,000 signatures. You can follow it online here.

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