Ministers urged to keep Universal Credit ‘lifeline’
The government has been urged to make the temporary £20 per week uplift to Universal Credit and Working Tax Credit permanent, as well as extending support.
A new analysis by the Joseph Rowntree Foundation (JRF) warns that if this lifeline is removed as planned in April 2021, it will cause a significant shock to the incomes of those who are newly unemployed and families who were already struggling to get by.
The JRF estimated around 16 million people are at risk of experiencing a cut of £1,040 per year in their support, and 700,000 are likely to be pulled into poverty in the Spring unless action is taken.
Those newly accessing social security due to unemployment are likely to have higher fixed outgoing costs and therefore find a severe income shock particularly difficult to weather and will be at risk of losing their home and getting into debt.
And at a time when households are grappling with additional challenges accessing childcare and transport, managing health risks, and when services like breakfast clubs and informal childcare arrangements are not available, many will be unable to cope if the uplift is removed, according to the JRF.
‘The additional £20 per week is a vital lifeline for many people on low incomes who are struggling to get by,’ said acting JRF director, Helen Barnard.
‘As we all adjust to living and working alongside Covid-19, we know many families have been hit by extra costs and barriers to earning as a result. Too many households are at risk of being pulled into poverty as unemployment rises.
‘We cannot afford to whip this lifeline away at precisely the time when it’s needed most. Now is the moment to help families stay afloat, not cut them adrift.
‘The Autumn Budget offers an opportunity to strengthen social security by making the increase to Universal Credit permanent and extending it to those on legacy benefits who are largely sick or disabled people and carers, who have wrongly been left out,’ she added.
Photo Credit – Wondermar (Pixabay)
