The independent Joseph Rowntree Foundation responds
to a new report from the Legatum Institute examining the impact
of Covid-19 on poverty. The report finds that poverty has risen
as a result of the pandemic, but government policy, including the
£20 uplift in Universal Credit and Working Tax Credits, has
protected hundreds of thousands more people falling into
poverty.
Helen Barnard, Director of JRF said:
“It is clear that the £20 per week uplift in
Universal Credit has prevented many people from falling into
poverty. We should be proud of our country’s decision to protect
those on the lowest incomes through our social security system –
it’s the right thing to do. But it makes it all the more
disappointing that the Chancellor has stayed silent on whether
this lifeline will stay in place beyond April, leaving millions
to wait out the winter in fear and uncertainty. There is no
conceivable scenario in which this support will not be needed,
and inaction risks a sharp rise in poverty.
“Even with the additional measures put in place at
the start of the pandemic, we have seen rising hardship and debt
this year. People who receive legacy benefits, largely those who
are sick, disabled or caring for others, have been left out of
any additional support so far, and extending them a lifeline must
be a priority.
“It’s not too late for the Chancellor to do the right
thing. We urge the Government in the strongest terms to correct
its course and commit to making the £20 uplift permanent and
extend it to legacy benefits at the earliest
opportunity.”