Despite some MPs appealing to the Government to make the £20 universal credit uplift permanent, they have announced that this will indeed be stopped.
The scheme will now officially end on 6th October, however, the exact date money will stop being paid will be dependent on when someone receives their universal credit allowance.
For some, this will mean the last payment they receive at the higher rate will be the end of September, only a matter of days. With this news and the announcement of National Insurance increase, there are several concerns over the impact this will have on people.
Labour leader Keir Starmer challenged the prime minister in Parliament, questioning how many hours extra a week someone would have to work to make up for the cut. He added “The Prime Minister may not understand the pressures facing families across the country but we do. He needs to understand the terrible impact of his decisions on working people across the country.”
Boris Johnson has justified the decision by stating that “For the first time in decades, wages across the board are rising 4.1% up on where they were before the pandemic.”
As further justification, the government increased the National Living Wage by 2.2%, to £8.91 an hour, the equivalent of £345 extra each year for someone working full-time.
They also stated that “Many claimants are eligible for an in-work allowance, which means they keep more of what they earn.”
If you have any concerns about the ending of the uplift, there is plenty of free guidance available online. Here are a few websites to help:
- Money Navigator Tool – Guidance on any coronavirus money worries
- Benefit calculator – Find out what benefits you’re entitled to
- Citizens Advice – If you’re worried about receiving less after the ending of the uplift
Source: BBC News