UK Parliament / Open data

People with Disabilities: Cost of Living

I will gladly take that point back and speak to ministerial colleagues in the Department about that aspect. The hon. Gentleman will recognise that the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Mid Sussex (Mims Davies),

has generally led on the legislative efforts to put this package in place, but I would be happy to raise that with her and to get him a proper, full, considered answer to that point.

Let me deal directly with one key issue that has come up in the debate: the structure of the cost of living payment and the argument that the payment is itself too low. I stress that the rationale is different for each of the cost of living payments. The Government’s view is that it is right that the highest amount goes to those on means-tested benefits, given that those on the lowest incomes are most vulnerable to rises in the cost of living. Having said that, we estimate that nearly 60% of individuals who receive an extra-costs disability benefit will receive additional support through the means-tested benefit payment. More than 85% will receive either or both of the means-tested and pensioner payments.

I assure colleagues that we are absolutely committed to ensuring that disabled people and people with health conditions receive the support that they need, which is why in 2022-23 we spent nearly £69 billion in real terms on benefits to support disabled people and those with health conditions. We will continue that throughout 2023-24 by uprating disability benefits in line with last September’s consumer prices index inflation figures. That means we expect to spend around £78 billion in 2023-24, which is 3.1% of GDP. That is a stark statistic. I recognise that Trident is a significant issue for the Scottish National party, and the figure of £3 billion was raised, but I and the UK Government would argue that there are strong reasons why we have a nuclear deterrent, which is a debate for another day.

The scale of support that we provide—to the tune of £78 billion in 2023-24—to people with disabilities and health conditions is significant. By 2027-28, total disability benefit spending is forecast to be more than £41 billion higher in real terms compared with 2010-11. Spending on extra-costs disability benefits alone will amount to £35 billion this year, all paid tax free, and in addition to any other financial or practical support that disabled individuals may receive.

The hon. Member for Chesham and Amersham (Sarah Green) asked about the adequacy of the disability cost of living payment and its evaluation. We are committed to an evaluation of the cost of living payments later this year. The disability unit is also working to build an evidence base to better understand and evidence the full impact of cost of living challenges for disabled people, across a range of sectors. It is trying to do that collaboratively and is drawing on the expertise, views and experiences out there to help us to shape that work.

Type
Proceeding contribution
Reference
732 cc325-6WH 
Session
2022-23
Chamber / Committee
Westminster Hall
Back to top