Thank you to those constituents who have approached me regarding support for those impacted by the cost of living. I entered politics as I care deeply about people, our community and doing what is right. I remain dedicated to standing up for all those who need assistance – my family needed it after my father suffered a brain injury when I was young - so I welcome the Conservative Party’s ongoing commitment to reducing poverty and supporting those in need.
We are committed to a sustainable, long-term approach to tackling poverty and supporting people on lower incomes. We will spend around £276 billion through the welfare system in Great Britain in 2024/25 including around £124 billion on people of working age and children. The number one thing we can do to support families with the cost of living is to bring down inflation, so people’s money goes further. Thanks to our clear plan and bold action, inflation is at normal levels from its peak of 11.1%, taxes have been cut by £900 for the average worker and wages are growing faster than prices.
We raised the Local Housing Allowance rates to the 30th percentile of local market rents in April 2024, benefiting 1.6 million low-income households. I was delighted to be the Minister at DWP which landed this massive investment, supported by the DWP Secretary of State Mel Stride, which will be up to £7 billion in the next 5 years.
It was just one crucial part of our £104 billion cost of living support package to help the most vulnerable which also included an increase to benefits by 6.7 per cent from April 2024.
Fundamentally, I believe that work is the best way out of poverty and since 2010, the Government has reduced the number of workless households by one million. With over 900,000 vacancies across the UK, our focus remains firmly on supporting people, especially parents, to move into and progress in work. This is an approach which is based on clear evidence about the importance of parental employment – particularly where it is full-time – in substantially reducing the risk of child poverty. The latest statistics show that, in 2021-22, children living in workless households were around five times more likely to be in absolute poverty after housing costs than those where all adults work.
Our core Job centre offer provides a range of options to help people into work, including face-to-face time with Work Coaches and targeted employment support. We also increased the National Living Wage by 9.8% to £11.44 for workers aged 21 years and over from this April – an annual increase in gross earnings of over £1,800 for someone working full-time on the National Living Wage.
To further help parents on Universal Credit who are moving into work or increasing their hours, we are providing additional support with upfront childcare costs. We have also increased the childcare costs that parents on Universal Credit can claim back by nearly 50 per cent, up to £951 a month for one child and £1,630 for two or more children.
Alongside this, we are continuing to support the delivery of free school meals for infants, as well as benefits-related free school meals, which are helping two million children. We are also investing over £200 million a year through the Holiday Activities and Food programme, which supports disadvantaged children and their families, including by providing them with healthy food.
As announced in the Spring Budget, £500 million of additional funding also enables the extension of the Household Support Fund, including funding for the Devolved Administrations through the Barnett formula to be spent at their discretion. This means that Local Authorities in England will receive an additional £421million to support those in need locally through the Household Support Fund.
With the announcement of a new price cap from Ofgem, from July 2024 the average bill has dropped by a further £122 since the April-June cap to £360 for those on direct debit. Alongside this the Department for Energy Security and Net Zero has also introduced new measures to help families save on energy costs and access cheaper deals. This includes examining how standard energy deals should work to pass on the cheapest electricity costs, as well as a new scheme to help customers repair or replace smart meter in-home displays after the one-year warranty. These displays provide an important service in helping families, including older and vulnerable people, keep track of their energy use. Extending support will help customers continue to make the most of the savings smart meters can offer as the price cap falls and competitive deals return to the market.
Problem debt is often very difficult to escape from and can have a devastating impact on existing issues including family problems and poor mental health. It is only right that people who fall into problem debt are helped to find a sustainable, long-lasting plan to solve their debt problems. This is why I welcome that the Government continued to maintain record levels of debt advice funding for the Money and Pensions Service (MaPS), bringing the budget for free debt advice in England to over £90 million in 2022-23. You can find out more here: Support with Debt | Mims Davies
Over the last few years, colleagues at the Department for Work and Pensions and I have worked incredibly hard to provide a vital safety net and deliver much needed help with the cost of living, against the challenges post pandemic and in a difficult geopolitical time, to millions of people.
I am immensely proud of our delivery record at the DWP so, should I be elected as the MP for the East Grinstead and Uckfield constituency, I am determined to support constituents by continuing to champion those who need support with the new Government.