Edinburgh, Cardiff and Belfast demand UK Government drops benefit change

THE three devolved governments have jointly demanded the UK Government dropd its plan to end a lifeline £20-a-week benefit change brought in during the pandemic.

The Scottish, Welsh and Northern Ireland administrations said if the money was withdrawn, it would send the poorest families crashing back into poverty with the loss of £1,000 a year.

In a letter to Work and Pensions Secretary Therese Coffey, they said the Government plan would cause hardship for thousands “when they need financial support the most”.

At the start of the pandemic, in March 2020, the Chancellor announced a one-year uplift in Universal Credit and Working Tax Credit of £20 a week, £1,040 a year.

The UC uplift was extended by a further six months in the March budget this year, while WTC claimants were paid a one-off amount of £500. The UC uplift is now due to end at the start of October, while the furlough scheme ends on September 30.

Despite growing calls to keep the UC uplift, including from six former Tory work and pensions secretaries, Chancellor Rishi Sunak has insisted the measure comes to an end.

Critics argue UC was already inadequate before the pandemic, and the uplift should become permanent to make it tolerable.

The uplift is estimated to be helping around half a million people in Scotland. The letter to Ms Coffey came from Social Justice Secretary Shona Robison, Welsh Social Justice Minister Jane Hutt and Northern Ireland’s Sinn Fein Communities Minister Deirdre Hargey.

They warned: “This planned withdrawal will be the biggest overnight reduction to a basic rate of social security since the modern welfare state began, more than 70 years ago. It could cut social security payments in Scotland alone by over £460 million per year by 2023/24.

We are concerned about the potential impact that reducing Universal Credit will have on child poverty, poverty levels and the financial health and wellbeing of people.

The impact will be heightened by the premature end of the furlough scheme and Ofgem’s recent confirmation that the price cap for default domestic energy deals is to be raised, resulting in the average customer’s bill increasing by £139.

“We urge the UK Government to reverse the decision without delay in order to avoid causing further anxiety.”

Across the UK around six million people receive UC, 2.2 million of them working and 1.6 million not required to work due to health and caring responsibilities that stop them from finding a job.

A UK Government spokesperson said: “Universal Credit has provided a vital safety net for six million people during the pandemic. The temporary uplift is part of a £400 billion support package which continues beyond the ending of restrictions. Our focus now is on our multi-billion-pound Plan for Jobs, which will support people in the long-term by helping them learn new skills and increase their hours or find new work.”