Government faces more pressure to keep Universal Credit uplift

A cross-party group led by a Yorkshire Conservative MP has urged the Government to make the £20 a week uplift to Universal Credit a permanent fixture.

The All-Party Parliamentary Group (APPG) on Poverty released a report today, calling on ministers to keep the rise, which was introduced to ease pressures during the pandemic, as well as extending it to legacy or related benefits and to suspend the benefit cap.

And Thirsk and Malton MP Kevin Hollinrake said: “Although UK social security is above the median level in Europe, its support for the unemployed is relatively low, so there is a compelling case for making the uplift permanent.

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“The £6bn per annum cost will, of course, pose a significant challenge for the Government, so this will mean tax increases or savings elsewhere and I would welcome an open debate about how this will be implemented."

Handout photo issued by UK Parliament of Kevin Hollinrake speaking during Prime Minister's Questions in the House of Commons, London. Photo: UK Parliament/Jessica TaylorHandout photo issued by UK Parliament of Kevin Hollinrake speaking during Prime Minister's Questions in the House of Commons, London. Photo: UK Parliament/Jessica Taylor
Handout photo issued by UK Parliament of Kevin Hollinrake speaking during Prime Minister's Questions in the House of Commons, London. Photo: UK Parliament/Jessica Taylor

The APPG on Poverty received written evidence from 26 expert organisations and individuals as well as holding a virtual oral evidence session in January.

Modelling carried out by Policy in Practice suggests that if the uplift were withdrawn, 683,000 households, including 824,000 children, would no longer be able to afford to meet their essential needs, with this number growing by 11 per cent when the impact of the two-child limit is taken into account.

While the Disability Benefits Consortium’s latest survey said that if the £20 per week uplift were extended to legacy and related benefits, it would allow people to manage their health better and avoid having to choose between heating and medication.

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The APPG’s co-chair, SNP MP Neil Gray, said “This all party report is evidence-based and clearly shows the need for early action from the UK Government to make the Universal Credit uplift permanent and extend it to legacy benefits.

“It has saved hundreds of thousands from falling into poverty, and extending it secure the income of millions at such an uncertain time. We heard really tough stories from people on legacy benefits and the Government cannot see them left behind any longer."

The Government has so far declined to confirm whether the rise will be kept.

The Chancellor, Rishi Sunak, is facing a series of demands, including from the Conservative benches, to extend support to businesses and individuals – including the £20 weekly boost to Universal Credit.

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But Work and Pensions Secretary Therese Coffey last week said she is “actively considering” with Mr Sunak how to continue supporting people through the pandemic.

Mr Sunak said in the Commons he expected measures to be laid out in the Budget next month.

Jonathan Reynolds MP, Labour’s Shadow Work and Pensions Secretary said: “Britain had the worst recession of any major economy because of the Government’s incompetence and indecision.

“Even the Government’s own MPs do not support the Chancellor’s planned cut to Universal Credit, taking £1,000 a year from millions of families already struggling in this pandemic.

“The Government is running out of time to do the right thing, give certainty to families and secure our economy, by cancelling their disastrous cut to Universal Credit."