This morning, around 5.5 million families across the United
Kingdom are waking up £1,040-a-year worse off due to the Prime
Minister imposing the biggest ever overnight cut to social
security.
Despite fierce opposition from across the political spectrum, his
government has pressed ahead with this controversial cut which
will cause immense, immediate and avoidable hardship.
As the cut comes into effect today, the Prime Minister
must face the five most serious consequences of his cut:
- Half a million more people pulled into poverty, including
200,000 children.
- Makes social security wholly inadequate by reducing the main
rate of out-of-work support to its lowest level in real terms
since around 1990 and its lowest ever level as a proportion of
average earnings.
- Around 20% of all working-age families across the UK have
lost £1,040 a year. 6 in 10 single parent families will be
affected by this cut.
- 1.7 million people who will experience this cut to Universal
Credit are unable to work - due to caring for others, disability,
or illness – a promise of higher wages will do nothing to help
them.
- The cut takes £6 billion of spending power out of local
economies. The cut has the most severe impact in Yorkshire and
the Humber, the North East, North West and West Midlands,
although no region will be left unscathed.
Helen Barnard, Deputy Director of the Joseph Rowntree
Foundation, said:
“Today the Prime Minister has imposed the biggest ever overnight
cut to social security. It makes a mockery of his mission to
level up. Despite overwhelming opposition, he is ploughing ahead
with a cut which fundamentally undermines the adequacy of our
vital social security system as we face a cost-of-living crisis.
This is not building back better, it’s repeating the same
mistakes made after the last financial crisis.
“The Government says a key test of levelling up is improving
living standards, yet they have just made around 5.5 million
low-income families £1,040 a year worse off. People’s bills won’t
get £87-a-month cheaper from today, in fact they are going up.
Ministers’ arguments in recent days beg the question: has the
party that created Universal Credit forgotten the purpose of the
system?
“The Prime Minister is abandoning millions to hunger and hardship
with his eyes wide open. Low-income families urgently need him to
reinstate this vital lifeline.”
Participants in the Covid Realities project responding to
the Prime Minister’s comments on the eve of the cut
“My husband has been in his job for 25 years +, he hasn’t
received a pay rise in 5 years and has recently been told there’s
no way he will get one anytime soon. So I’m sorry but there’s no
fix there for us. Once again the only option is to struggle and
I’m tired of it.”
Emma, England, Covid Realities
“He has no idea how tough it is and how hard people are working
to make ends meet! It is sickness inducing that he completely
misses the point that families will either be cold or hungry due
to this cut.”
Kim, Wales, Covid Realities
“Fuel and food is on the increase and ... families on a low
income cannot afford to absorb these costs. It is short-sighted
to not think of the long term costs involved when already
impoverished working families cannot sustain themselves.”
Aurora, England, Covid Realities
“So our prime minister has said he knows it is tough for people
on low incomes, does he honestly? … How as parents can we support
our children when we are going without food, hungry and unable to
concentrate and even sleep at night with worry and stress, do you
really understand? … I would invite any MP to come and actually
experience the day to day drain of living on low income and the
impact that has on our mental and physical wellbeing.”
Caroline, Northern Ireland, Covid Realities
Political consequences:
-
413
parliamentary constituenciesacross Great Britain will see
over a third of working-age families with children hit by the
planned £1,040-a-year cut to Universal Credit and Working Tax
Credit.
- Of these 413 constituencies, 191 are Conservative – 53 of
which were newly won at the last general election or in a
subsequent by-election.
- In 35 local
authorities across Great Britain, 50% or more of
working-age families with children will be impacted by the
planned cut.
