DWP confirms new evaluation of cost of living payments to measure impact on low-income and vulnerable people

The Department for Work and Pensions (DWP) has confirmed that an “evaluation of the Cost of Living Payments is underway” after Labour MP Navendu Mishra asked whether an estimate has been made of the “average financial impact per claimant of the discontinuation of Disability Cost of Living Payments”.

More than six million people claiming disability benefits including Personal Independence Payment (PIP), Adult Disability Payment (ADP), Attendance Allowance and Disability Living Allowance (DLA) received one-off payments for £150 in 2022 and 2023. The lump sum was part of the UK Government’s financial package to help people with a disability navigate the ongoing cost of living crisis.

In a written response last week, Minister for Disabled People, Health and Work, Mims Davies MP, said that “no estimate has been made about the discontinuation of Disability Cost of Living Payments” adding that the DWP estimates some 60 per cent of disabled people also received £900 in means-tested Cost of Living Payments over the 2023/24 financial year.

Ms Davies said: “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.”

Cost of Living Petition

The DWP recently rejected proposals in an online petition calling for further cost of living support to help low-income and vulnerable households during the 2024/25 financial year.

The final Cost of Living Payment, worth £299, was made to around 8 million households across Great Britain in February, however, petition creator William Conway, believes more help is still needed throughout 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 written response from the DWP has been posted on the petitions-parliament website and states: “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 continued: “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.”

More than 19,300 have signed the ‘Extend cost of living payments to low income households beyond February 2024’ petition. At 100,000 signatures, the Petitions Committee would consider it for debate in Parliament - you can view it online here.