Ministers from Wales, Scotland and Northern Ireland have called the UK Government to make the Universal Credit uplift a permanent change.
As a response to the COVID-19 pandemic, the government introduced a £20 per week uplift to support low income families. However, this scheme is now set to be scrapped as of October. There are growing concerns about the impact this will have on poverty and the hardship families will face.
Research by the Joseph Rowntree Foundation (a charity which conducts & funds research aimed at solving poverty in the UK) showed that 500,000 people could be plunged into poverty ahead of the cuts. According to the charity, most constituencies in England, Wales and Scotland will see more than one in three families and their children affected as a result of the £1,040-a-year cut.
Citizens Advice also warned that a third of those on universal credit (around 2 million people) could end up in debt after the extra payment is removed.
As well as physical health and wellbeing, there are concerns over the psychological and mental distress on those affected by the scheme.
A government spokesperson has stated that it is right for the government to put emphasis on getting people back into work now that the economy is improving. They said “The temporary uplift to Universal Credit was designed to help claimants through the economic shock and financial disruption of the toughest stages of the pandemic, and it has done so.
“Universal Credit will continue to provide a vital safety net and with record vacancies available, alongside the successful vaccination rollout, it’s right that we now focus on our Plan for Jobs, helping claimants to increase their earnings by boosting their skills and getting into work, progressing in work or increasing their hours.”
The government plans to phase out the increase from the end of September, but we wonder if they will reconsider?
Source: Sky News