In the years leading up to the pandemic, cuts and freezes to
social security meant benefit levels were too low to protect
families from hardship. The £20-a-week was a tacit recognition of
this, with the Chancellor saying he wanted to “strengthen the
safety net.” The need for this has not changed – in fact prices
and bills are continuing to go up. Removing the increase will
cause immense, immediate, and avoidable hardship for millions of
families.
Key facts:
-
The Government would be responsible for the biggest
ever overnight cut to social security. Around 5.5
million families will experience a £1,040-a-year cut to their
incomes next month. Half a million more people are set to be
pulled into poverty, including 200,000 children.
-
Working families make up around 60% of families who
will be affected by the cut to Universal Credit and
Working Tax Credit.
-
Over 400 constituencies are set to see over 1 in 3
working-age families with children hit by the cut to Universal
Credit. (published 26 August 2021)
- Of these 413 constituencies, 191 are Conservative – 53 of
which were newly won at the last general election or in a
subsequent by-election.
- The looming cut will have the most severe impact in
Yorkshire & the Humber, the North East, North West and
West Midlands. Full constituency impact data is available
here.
-
The cut is opposed by six former Conservative Work
& Pensions Secretaries, the Northern Research
Group of Conservative MPs, the One Nation Group of Conservative
MPs, all the devolved administrations, numerous cross-party
committees in all nations of the UK and a huge coalition of
charities and community groups.
recently said, “the extra £20 has returned to UC some of the
investment that was cut from my original design.”
-
100 organisations urge the Prime Minister not to cut
Universal Credit. Among the signatories of the joint
open letter to the Prime Minister are leading voices on health,
education, children, housing, poverty, the economy and other
aspects of public policy. (published 2 September)
Why the Government’s Plan for Jobs is not the whole
answer:
-
Around 2/3 of people on Universal Credit are either in
work or are unable to work.
- 1.7 million people who will have their incomes cut are
unable to work - due to caring for others, disability, or
illness - a strong labour market will not change this, their
bills will not be £20-a-week cheaper, the cut does nothing
except increase unnecessary hardship.
- Energy prices, cost of items on the shelves are getting
more expensive and National Insurance is set to rise, yet the
Government plans to cut the incomes of families on the lowest
incomes by £1,040-a-year.
- All the families in receipt of Working Tax Credit contain
someone who is working at least 16 hours a week.
- For those already in work, it’s not as simple as they can
just work a couple more hours contrary to the Work & Pensions
Secretary’s comments this week. Not only does the design of
Universal Credit mean it would
take far more than working two extra hours to make up for
the loss of £20-a-week, but also:
- Many people will face genuine practical barriers to extra
hours – employers unable to provide extra hours or better
pay, lack of suitable alternative jobs in their area, cost of
childcare, other caring responsibilities, transport costs
etc.
-
If the cut goes ahead, it would take the main rate of
out-of-work support down to its lowest levels in real terms
since around 1990. People looking for work should not
have the additional stress of being pulled into poverty and
debt.
- The PM and Chancellor are creating a false trade-off between
work and Universal Credit - it ignores the reality of who is
about to lose £20-a-week. Even with the most successful labour
market recovery there is still a need for the £20-a-week, to make
sure Universal Credit can do its job and families can afford to
pay for essentials.
Recent interventions:
- The UK Government is braced for the “catastrophic” impact of
the end of the temporary uplift to the main welfare benefit next
month, according to an internal Whitehall analysis. (Financial Times, 8
September)
-
Marcus
Rashford
-
MP
has written articles for ConservativeHome and The
House magazine calling on the
Chancellor not to cut Universal Credit.
-
Joint
letter from and .
- Ministers from the Scottish Government, Welsh Government and
Northern Ireland Executive issued a joint
call to keep the £20-a-week.
