Posted: Mon 30th Aug 2021

UK devolved Governments express “grave concerns” over planned £20 Universal Credit cut and call for reversal

News and Info from Deeside, Flintshire, North Wales
This article is old - Published: Monday, Aug 30th, 2021


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The UK’s three devolved administrations have called on the UK Government to reverse a planned cut to the £20 a week Universal Credit uplift given to help struggling families during the pandemic.

A letter has been sent to the UK Government’s Secretary of State for the Department of Work and Pensions, Thérèse Coffey, expressing “grave concerns” regarding plans to withdraw the £20-per-week increase.

As it stands, the UK Government is set to slash benefits by £20 a week – equivalent to £1,040 a year – from 6 October.

The exact date people will see the cut kick in will depend on the day they get their Universal Credit payment.

For many, this means September will be the last month they see their benefits paid at existing levels.

If the planned cut goes ahead, it will hit nearly six million people on Universal Credit.

More than a third (38%) of those who’ll see their income hit are already in employment, while one in six (16%) are under 25.

The letter – jointly signed by the Welsh Government’s Minister for Social Justice Jane Hutt, Scottish Government’s Cabinet Secretary for Social Justice, Housing and Local Government Shona Robison, and the Northern Ireland Executive’s Minister for Communities Deidre Hargey – says:

“We are writing to express the grave concerns of all three devolved administrations regarding your Department’s upcoming plans to withdraw support to the poorest in our society by allowing the £20-per-week increase to Universal Credit and Working Tax Credits to expire.

“…this planned reduction means the biggest overnight reduction to a basic rate of social security since the modern welfare state began, more than 70 years ago. Failing to maintain the recent uplift to Universal Credit will increase hardship and poverty for people who are already struggling.

“To support the social and economic recovery, particularly as we ease out of the public health emergency, we urge you to reverse this decision and to strengthen the support offered by Universal Credit, instead of weakening it.

“We are concerned about the potential impact that reducing Universal Credit will have on child poverty, poverty levels and the financial health and well-being of people.”

The letter also questions the Department for Work and Pensions’ (DWP) stated position that the decision not to further extend or make permanent the £20-per-week increase to Universal Credit and Working Tax Credits is to encourage people into work.

Latest UK Government statistics show that of the 6 million people on Universal Credit, 2.2 million are already working and 1.6 million are not required to work due to health and caring responsibilities that prevent them from seeking employment. The letter queries;

“…how failing to maintain the uplift to Universal Credit for households in these situations encourages people into work, and are concerned about the need to ensure that it provides them with adequate financial support that takes into account their personal circumstances.”

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