Spring Statement: Chancellor misses chance to reverse ‘devastating’ impact of UC cut

By not addressing Universal Credit (UC) payments in its Spring Statement, the government has failed to protect the most vulnerable from the effects of rising cost-of-living, charity warns.

According to Centrepoint, the Spring Statement was a missed opportunity for the Chancellor to start reversing the impact of the last year’s UC cut. And despite additional announcements around the rise in the National Insurance (NI) threshold to £12,570, this means nothing for those young people already struggling to find work or in part-time and insecure employment.

The charity is calling for a new Youth Independence Payment of £15.58 per week for young people living independently without family support. This would raise their overall UC entitlement to the rate that over 25s receive in recognition that they face the same living costs.

Centrepoint’s Head of Policy, Research and Campaigns, Alicia Walker said: ‘Today’s statement was an opportunity for the Chancellor to start reversing the devastating impact of last year’s cut to Universal Credit. Sadly, by failing to increase Universal Credit, the Chancellor has missed his chance. In fact, below-inflation increases to benefits mean that thousands of vulnerable young people will face another real terms cut to their incomes next month as living costs continue to rise.

‘While the Household Support Fund will be doubled next month, it remains to be seen whether the first package actually reached vulnerable young people, a group who after today’s statement will continue to face the lowest entitlements to financial support from the government.

‘Universal Credit is the best way to keep young people out of debt, in stable accommodation and able to afford basic necessities – it can’t do that if it fails to keep pace with the cost of living.’

In related news, charities have warned that the chancellor’s Spring Statement ‘missed opportunity to tackle the cost-of-living crisis head on’, as people are having to cut back on accommodation and food.

Photo by JJ Ellison