Helen Barnard, Director of the Joseph Rowntree Foundation, said:
“It is unacceptable that the Chancellor has decided to cut the
incomes of millions of families by £1040-a-year in six months’
time. He said this Budget would “meet the moment” but this
decision creates a perfect storm for the end of this year, with
the main rate of unemployment support cut to its lowest level in
real terms since 1990 just as furlough ends and job losses are
expected to peak. This makes no sense and will pull hundreds of
thousands more people into poverty as we head into winter.
“Even before Coronavirus, incomes were falling fastest for people
with the lowest incomes due in large part to benefit cuts.
Ministers know this short extension offers little relief or
reassurance to the millions of families, both in and out-of-work,
for whom this £20-a-week is helping to stay afloat. This cut to
Universal Credit will increase hardship when the economic crisis
is far from over and undermine our national road to recovery.
“It is not too late for the Chancellor to do the right thing:
announce an extension of the £20 uplift to Universal Credit for
at least the next year. It is also totally indefensible that
people who are sick, disabled or carers claiming legacy benefits
continue to be excluded from this vital support. The Government
must urgently right this injustice.”
On housing, Helen Barnard added:
“With billions going into propping up already high house prices
through the Stamp Duty Holiday and the Mortgage Guarantee Scheme,
it’s galling to see the government choose to ignore millions of
renters who are already worried about mounting arrears. Many will
be left struggling to keep a roof over their heads at the same
time as financial support is pulled away.”
Caroline is a childminder from Northern Ireland who had to claim
Universal Credit when the pandemic hit and is part of the Covid
Realities project exploring the impact of the pandemic on parents
and carers on low incomes. In response to the Budget she said:
“This decision is another cliff edge to dread. It leaves us
facing the winter months with uncertainty again. We don't know
how the economy will recover, yet we face more insecurities for
those on low income and on Universal Credit. Through Covid
Realities, I know that so many families face this insecurity, and
it’s just making our daily life – which is already so difficult –
only harder still. I wish things could be different. I wish the
government would listen to us.”
Lola is a parent of two from the south-east who receives
Universal Credit and is also part of Covid Realities. She said:
“This short-term decision on Universal Credit just feels like
it’s prolonging the inevitable. It fails to give us the clarity
and the security that we need. It brings back all the same
worries and anxieties that millions of families have been
experiencing in the run up to this announcement; and that we’ll
have again when this extension comes to an end this winter.”
