Universal Credit: Asks not to cut £ 20 per week ‘lifesaver’

Millions of the UK’s poorest households could see their income cut by £ 20 a week from April unless a “vital” payment continues, charities warn.

The Joseph Rowntree Foundation and others are asking the Chancellor to make a temporary increase in Universal Credit, in addition to other benefits, permanently.

The year-long walk was introduced in April, after the UK was locked in, to help those who had lost their jobs.

But there are no signs that it will extend beyond next April.

Chancellor Rishi Sunak outlined his Winter Economy Plan last week, but there was no commitment to maintain the temporary increase in Universal Credit.

‘Good work undermined’

Now, some 50 children’s charities, food bank providers, housing organizations, benefits and debt advisers, disability groups and others say that if this “lifeline” is cut it runs the risk of plunging distressed households into poverty.

“Falling incomes and rising costs throughout the pandemic have put families under immense financial pressure, but the £ 20 increase has been a lifesaver allowing many of them to stay afloat. and it has prevented us from seeing a marked increase in poverty levels. “, says the coalition of groups in a letter to the chancellor.

“However, if the upgrade ends in April 2021, this good work runs the risk of being undermined.”

The Joseph Rowntree Foundation model suggests that around 16 million people will live in households facing an overnight income loss equivalent to £ 1,040 a year, with the lowest incomes and families with children being the worst affected. .

They say that 700,000 more people will be pushed into poverty, including 300,000 children, while another 500,000 of those already in poverty will be plunged into deep poverty, a measure that is estimated to be more than 50% below the threshold of poverty.

“We therefore urge you to make the improvement permanent and prevent families from being left adrift while they need help staying afloat,” the letter added.

‘Sick and disabled people’

The letter also urges the extension of this lifeline to applicants for inherited benefits who are currently excluded from additional support of £ 20 per week.

“Furthermore, it is simply not correct that those with inherited benefits, who are mostly sick or disabled people and caregivers, and therefore have been at higher risk during this pandemic, have not received an equivalent lifeline,” he says.

“We urge you to follow the advice of the Social Security Advisory Committee and support 1.5 million more people by applying an increase equivalent to those receiving inherited benefits who have so far been excluded from the increases.”

The Joseph Rowntree Foundation is an independent social change organization working to solve poverty in the UK.

Other signatories include Barnado’s, Citizens Advice, Child Poverty Action Group, Macmillan Cancer Support, Oxfam, The Salvation Army, Save the Children, and Shelter.

It comes a week after the Resolution Foundation think tank issued a similar warning.

He noted that unemployment could rise sharply next April, adding to the difficulties of the withdrawal of £ 20.