Treasury rules out £20 Universal Credit boost

THE Treasury yesterday ruled out raising benefits to help those struggling with the cost of living.

Simon Clarke, the chief secretary to the Treasury, rejected calls to reinstate the £20-a-week increase in Universal Credit that was introduced during the pandemic.

However, Boris Johnson insisted yesterday that ‘no option is off the table’. A growing number of Tory MPs backed reviving the rise, with Sir Iain Duncan Smith saying that it is the easiest way to target help at those on the lowest incomes.

Despite Mr Clarke saying it is ‘not going to return’, Downing Street suggested that such a move had not been ruled out.

During a school visit in Orpington, south-east London, the Prime Minister said: ‘No option is off the table. We have got to do what we can, and we will, to look after people through the pressures on energy prices and with what’s going on in Russia.’

Multiple sources later said that the increase in benefits was not under consideration.

The £20-a-week ‘uplift’ was worth about £1,000 a year to millions of low-income families. It was introduced in March 2020 but scrapped 18 months later to save money.

Instead, Chancellor Rishi Sunak is reportedly interested in a change to the ‘taper rate’ at which people on Universal Credit lose their benefits when they take on more work.