Boris Johnson axes Universal Credit: What this means for you.
Cuts to Universal Credit will put some UK families in a financial bind this winter. What impact will the cuts have on you? Following public outrage, the £20 per week boost to Universal Credit introduced to help families cope with the pandemic was removed yesterday.
The cuts, which are the largest in Universal Credit history, come as fuel prices rise; the cuts are expected to affect nearly 5.8 million claimants.
Dame Clare Moriarty, Chief Executive of Citizens Advice, said in a statement to the Brinkwire: “Cutting Universal Credit just as we’re about to enter a particularly difficult winter is a recipe for disaster.
“Families on modest incomes simply cannot afford to lose £20 per week when their budgets are already being pushed from all sides.
“The government must reverse course if it is serious about ‘leveling up.’ Otherwise, our frontline counsellors may witness many more people in the coming months having to choose between heating and food.” According to Citizens Advice, over a third of those on Universal Credit, or roughly 38%, would be in debt if they simply paid their basic obligations if their benefits were cut by £20 per week.
They fear the changes will put 1.5 million working people on Universal Credit in financial difficulties this winter, putting them at risk of falling behind on bills and possibly having to borrow money to feed their families.
They also claim that a quarter of working claimants, or roughly 600,000 individuals, are concerned about being unable to afford basic necessities such as toiletries and food, and that 45 percent of those earning less than £21,000 are concerned about being unable to pay their heating bills this winter.
All of the other financial pressures that families are facing exacerbate the problem.
People could lose £37.40 per week due to rising inflation and the loss of the Warm Home Discount if providers collapse.
“It is not too late for the government to save millions of people the decision between heating and feeding this winter,” former Prime Minister Gordon Brown stated earlier this week.
According to research by Professor Jonathan Bradshaw and Dr Antonia Keung of the University of York, it is estimated that 840,000 households have fallen into fuel poverty as a result of the energy price hike on October 1.
According to the Resolution Foundation’s calculations, single claimants under the age of 25 will lose 25% of their Universal Income benefit, which will drop from £79 per week to. The news is summarized by Brinkwire.