Technical limitations block monthly support payments for winter 2023-24.

The Treasury Committee has disclosed that outdated government systems prevent the rollout of more frequent cost of living payments next winter. Despite agreeing in principle with proposals for monthly payments, the government cites technological constraints in its welfare payment system.

In December, the cross-party Committee recommended spreading cost of living payments over six months to reduce abrupt financial “cliff-edges.” These cliff-edges often leave individuals who marginally exceed eligibility criteria without any support. Similarly, households earning slightly more or qualifying for benefits late miss out on much-needed assistance.

The government’s response, published today, acknowledges the logic behind smaller, frequent payments but states that implementing them would disrupt core benefit delivery. Eligibility periods are intentionally announced retroactively to mitigate work disincentives and minimize fraud risks.

The response also highlights gaps in data collection regarding the effectiveness of existing support mechanisms like the Household Support Fund. Limited insights exist into how many low-income households fall outside the benefit system.

The Committee’s proposal aimed to provide a smoother financial safety net during the winter months, ensuring equitable distribution of support across vulnerable groups. However, the government’s system limitations remain a significant hurdle in adapting to such a policy shift.

While the Treasury Committee continues advocating for improvements, addressing these technological barriers appears critical to enhancing future cost of living support programs. Without updates to these systems, targeted and timely assistance for households may remain unattainable.