Low rates of social security are ‘pushing people into poverty and driving destitution’, say MPs

All-Party Parliamentary Group calls for immediate increase in all benefit levels to meet the needs of claimants

The All-Party Parliamentary Group (APPG) on Poverty has concluded that low rates of social security are 'pushing people into poverty and driving destitution'.

Introducing a new report, Enough to be able to live, not just survive – which sets out the results of its inquiry into the adequacy of social security – the APPG says that –

'While the announcement in the Autumn Statement that benefits would be uprated in line with the September inflation rate next April was welcome, the question of the underlying (in)adequacy of the benefit rates remains a vital one, as does the problems created by the delay in uprating at a time of high inflation.

The APPG adds that –

In April 2022, benefits were uprated by 3.1 per cent – the level of inflation from the previous September. By April, inflation had climbed to 9 per cent, meaning millions of people receiving benefits faced real-term cuts to their incomes. Even before this, anti-poverty charities had been warning about the erosion of social security due to a decade of cuts and freezes, leaving social security entitlement insufficient for people to afford the basic necessities and to live a life of dignity.'

Having considered evidence from a wide range of sources, including written submissions from 24 third sector organisations, academics, lived experience groups, think tanks and other interested bodies, the APPG concludes that –

'Our social security system should exist to support households and provide genuine financial security, yet in its current state, the low rates of social security are pushing people into poverty and driving destitution. In the UK, our rates of social security are functioning at subsistence levels, leaving people unable to put food on the table and money in the meter. Without any meaningful link between benefit rates and claimants’ needs, social security has been left to wither under the political will of recent governments. It is clear that rates of benefits must be linked to something other than an arbitrary historical level and instead should reflect needs.'

The APPG also finds that –

'Experiencing over 12 months of high inflation illuminated the flaws in the current uprating process. The six-month lag caused by uprating in April by September’s inflation rate means people on low incomes, who need support the most, are faced with rising prices whilst their incomes remain stagnant. Furthermore, the debate around whether to uprate benefits in line with inflation must be a guarantee rather than an annual political debate. People on low incomes need security, not months of uncertainty while politicians decide whether to cut their incomes.'

As a result, the APPG makes a number of recommendations, including that the government should –

  • increase all benefit levels to address the immediate need among people relying on social security;
  • establish an independent panel (similar to the Low Pay Commission) or expand the role of the Social Security Advisory Committee to recommend benefit levels;
  • consider the call from the Joseph Rowntree Foundation and the Trussell Trust to enshrine in legislation that universal credit’s standard allowance at least covers people’s essentials such as food, utility bills and basic household goods;
  • guarantee annual inflationary uprating of benefit levels, including the potential for mid-year uprating during periods of high inflation; and
  • reduce the maximum rate of deductions from benefits to 15 per cent, and pause deductions from government debts during periods of high inflation.

For more information, see APPG publishes report on the (in)adequacy of social security from appgpoverty.org.uk