New call to extend Universal Credit help

The £20 weekly emergency increase to Universal Credit payments must be extended for at least a year to prevent hundreds of thousands of families plunging into poverty, MPs have warned.

The temporary rise, introduced at the start of the coronavirus pandemic, is in place until the end of March and the Government is facing increasing pressure to extend the extra support.

AnewreportfromtheWork and Pensions Committee argues it must be kept in place for another year "at the very least", if the Government does not make it permanent and removingitinAprilwouldplunge hundredsofthousandsoffamiliesintopovertyanddragthose already in poverty "down into destitution".

They acknowledge that keeping the uplift would come at a substantial cost – around £6.4bn.

The committee has also warned against replacing the weekly increase with a one-off payment, something Work and Pensions Secretary Therese Coffey said was one of the options the Government has been considering.

Stephen Timms, chairman oftheWorkandPensionsCommittee,said:"Removingtheextra payment in March would represent a failure by Government - failure to recognise the reality of people struggling.

"Without regular support, hundredsofthousandsoffamilies will be swept into poverty or even destitution. Governmentmustendtheuncertainty and commit to extending this lifeline.

"The Chancellor faces difficult decisions. He may find it hard to make the increase permanent, but the pandemic's impact on the economy will, sadly, be with us for some time and an extension for a year should be the bare minimum.”