Overview

This bill outlines the provision of one-off additional payments to individuals receiving specific means-tested benefits, tax credits, and disability benefits. These payments aim to provide financial support during a period of increased cost of living.

Description

The bill details two types of payments: means-tested additional payments and disability additional payments.

Means-Tested Additional Payments

A £326 payment will be made to those qualifying for specific benefits (Universal Credit, State Pension Credit, Income-Based Jobseeker's Allowance, Income-Related Employment and Support Allowance, Income Support) on or before 25 May 2022, and a further £324 payment at a later date to be determined by the Secretary of State, but not later than 31 October 2022. Similar payments are also made to those receiving Child Tax Credit or Working Tax Credit. The bill specifies the criteria for qualifying entitlement.

Disability Additional Payments

A separate £150 payment is stipulated for individuals receiving various disability benefits on or before 25 May 2022. This includes Disability Living Allowance, Personal Independence Payment, Attendance Allowance, Constant Attendance Allowance, Adult Disability Payment, Child Disability Payment, Armed Forces Independence Payment and mobility supplements under specific schemes.

Administration

The bill mandates cooperation between the Department for Work and Pensions (DWP) and Her Majesty's Revenue and Customs (HMRC) for administering these payments. Existing rules concerning overpayments, recovery, and appeals will apply to these additional payments, with some modifications permitted via regulations.

Government Spending

The bill will lead to increased government spending. Precise figures aren't explicitly stated but substantial costs are implied given the proposed payments of £326 and £324 to eligible recipients of means-tested benefits and tax credits, and a £150 payment to those on disability benefits. The total cost will depend on the number of qualifying individuals.

Groups Affected

• Recipients of means-tested benefits: Universal Credit, State Pension Credit, Income-Based Jobseeker's Allowance, Income-Related Employment and Support Allowance, and Income Support recipients will receive a one-off payment.
• Recipients of tax credits: Child Tax Credit and Working Tax Credit recipients will receive a one-off payment.
• Recipients of disability benefits: Individuals receiving various disability benefits (listed in section 5(2) of the bill) will receive a separate one-off payment.
• HMRC and DWP: These government departments will be responsible for administering the payments and will incur administrative costs.

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