The Work and Pensions Secretary, Dr Thérèse Coffey, has responded
to a letter issued by cross-party committees from Westminster,
the Northern Ireland Assembly, the Welsh Senedd and the Scottish
Parliament.
The joint letter, sent in July, had called on the Government to
extend the £20 a week increase in the standard allowance of
Universal Credit, which is due to end in October. It means the
standard rates will go down to £257.33 a month for single
claimants aged under 25, or £324.84 a month for single claimants
over 25.
The Secretary of State’s response confirms that the increase will
end as planned on 6 October. She says:
“Now the economy has reopened it is right that the Government
should focus on supporting people back into work and supporting
those already employed to progress in their careers. Our ambition
is to support two million people move into and progress in work
through our comprehensive £33 billion Plan for Jobs.”
The original letter was signed by , Convener of
Holyrood’s Social Justice and Social Security Committee,
MP, Chair of Westminster’s Work and Pensions Select
Committee, , Chair of
Stormont’s Committee for Communities, and , Chair of the Senedd’s Equality and Social
Justice Committee.
Government statistics show that there were six million people
receiving Universal Credit by January 2021, up from about three
million in March 2020.
In its first oral evidence session after the summer recess, the
Work and Pensions Committee will hear from people with personal
experience of claiming Universal Credit during the pandemic. The
hearing takes place on Wednesday 8th September at
9.30am.
Rt Hon MP, Chair of the Work and Pensions Committee,
said:
“The £20 cut will plunge hundreds of thousands, including
children, into poverty. Instead, the Government should extend the
lifeline beyond September. The Secretary of State’s dismissive
response to our letter suggests that the Government is still in
denial about the impact of ending the increase.
“The Government’s new employment support schemes are welcome, but
40% of Universal Credit claimants are already in work. The cut
will hit many working families hard. Benefit rates have not kept
up with the rising cost of living, and the Government’s plan
means that, in real terms, they will fall to their lowest level
in over 30 years. The Government must change course to prevent
severe hardship for many thousands of families.”
, Chair,
Committee for Communities, said:
“The stark reality is that this £20 per week uplift has been a
lifeline for many families across Northern Ireland.
Faced with the unprecedented challenges posed by the pandemic,
the decision by the Government to increase the level of payment
was welcome as many families faced a drop in household income,
while bills and living costs needed met.
However, while this move was always intended to be temporary, the
impact of the pandemic remains. Indeed, it is becoming more acute
with the phasing out of furlough. Furthermore, the price of food
is rising, and it is widely expected that we will, like in GB,
see energy price rises over the coming months. This will plunge
more families into financial crisis.
This enhanced safety net of Universal Credit simply cannot be cut
faced with the current and impending pressures on household
budgets.”
, Convener of
the Social Justice and Social Security Committee, said:
“The response from the Secretary of State failed to engage on the
issues we raised and recognise the large proportion of Universal
Credit recipients who are already in work.
“If this cut is to go ahead it would be the single biggest social
security cut since the second world war as we are still assessing
the impact the pandemic has had on poverty levels for those in
and out of work.
“UK Ministers must reflect on the damage this cut will do,
particularly to those groups already suffering the most from the
pandemic such – children, disabled people, single parents and
people from BAME communities – and keep this key support in
place.”
, Chair, Equality and Social Justice Committee,
said:
“The Government’s new employment support schemes are welcome, but
40% of Universal Credit claimants are already in work. This cut
will hit many working families hard. So the £20 cut will plunge
hundreds of thousands, including children, into poverty. The
Government should extend the lifeline beyond September, but the
Secretary of State’s dismissive response to our letter suggests
that the Government is still in denial about the impact of ending
the increase.
Benefit rates have not kept up with the rising cost of living,
and the Government’s plan means that, in real terms, they will
fall to their lowest level in over 30 years. The Government must
change course to prevent severe hardship for many thousands of
families.”
