Coffey under fire as plea to keep extra £20 Universal Credit payment rejected

THE UK Government is in denial about the impact of cutting the uplift to Universal Credit, an MP has claimed.

Labour’s Stephen Timms, who chairs the Work and Pensions committee, made the comments in response to a letter from Department for Work and Pensions (DWP) Secretary Therese Coffey.

Ms Coffey was replying to a plea from representatives from the Scottish, Welsh and Northern Irish governments, as well as Mr Timms, asking for a reconsideration of the Universal Credit reduction.

In response to the coronavirus pandemic, Chancellor Rishi Sunak announced that people claiming the benefit would receive an additional £20 per week, but this is due to be withdrawn at the end of this month.

Conservative MPS and several former Work and Pensions secretaries have joined charities and opposition politicians in calling for the uplift to be made permanent, warning of dire consequences for those already living on the breadline.

Government statistics show there were six million people receiving Universal Credit by January this year, up from about three million in March 2020.

In her letter, sent last night, Ms Coffey confirmed the uplift would end, saying: “Now the economy has reopened it is right that the Government should focus on supporting people back into work and supporting those already employed to progress in their careers. Our ambition is to support two million people move into and progress in work through our comprehensive £33 billion Plan

For Jobs.”

The response was slated by those who sent the original letter.

Neil Gray, SNP MSP and convener of Holyrood’s Social Justice and Social Security Committee, said: “The response from the Secretary of State failed to engage on the issues we raised and recognise the large proportion of Universal Credit recipients who are already in work.

“If this cut is to go ahead it would be the single biggest social security cut since the Second World War as we are still assessing the impact the pandemic has had on poverty levels.

Mr Timms said the response by Ms Coffey showed the Government was “in denial” about the impact of the plans.

He said: “The £20 cut will plunge hundreds of thousands, including children, into poverty.

“Instead, the Government should extend the lifeline beyond September. The Secretary of State’s dismissive response to our letter suggests the Government is still in denial about the impact of ending the increase.

“The Government’s new employment support schemes are welcome, but 40 per cent of Universal Credit claimants are already in work. The cut will hit many working families hard. The Government must change course to prevent severe hardship for thousands of families.”