As families struggle, the DWP conducted a ‘no assessment’ on the impact of uplift removal on Universal Credit.
UNIVERSAL CREDIT payments will be decreased starting in the autumn, after Thérèse Coffey, Secretary of State for Work and Pensions, announced that the £20 increase granted during the pandemic will be revoked. Thousands of families are likely to be affected across the UK, but the DWP has stated that it has yet to assess the impact.
Universal Credit payments are made to persons who have fallen on hard times financially and are intended to cover a variety of living expenses. As the economy was damaged by the coronavirus in 2020, the government increased Universal Credit rates by £20 across the board, and while the DWP faced requests to make the increase permanent, it has now indicated that the increase will be abolished in the coming months.
The Government was recently pressed on this in the Commons, where the DWP stated that it has yet to analyze the potential consequences.
Edmonton Labour (Co-op) MP Kate Osamor demanded clarification on the decision.
“To ask the Secretary of State for Work and Pensions what current assessment her department has made of the likely impact of removing the £20 increase to Universal Credit claimants,” Ms Osamor added.
Will Quince, Parliamentary Under-Secretary for the Department of Work and Pensions, responded to this question on July 7.
“No assessment has been made,” Mr Quince replied.
“In March 2020, the Chancellor announced a £20 per week increase to Universal Credit and Working Tax Credit as a temporary measure to help individuals who are experiencing the most financial hardship as a result of the public health emergency.
“Another six-month extension to the upgrade was announced in March at this year’s Spring Budget, and by the time it ends, more than £9 billion will have been spent on it, well beyond the roadmap’s end date.
“As the situation evolves, the government will continue to analyze how best to support individuals and companies, as it has done throughout this pandemic.
“Through our Plan for Jobs, we are dedicated to supporting the most vulnerable families by investing billions more on welfare and preparing a long-term path out of poverty by assisting people in increasing their working hours or finding new jobs.”
While the DWP has yet to make a decision, a number of charities and other organizations have cautioned that eliminating the uplift might be disastrous. “Brinkwire News in Condensed Form.”