Universal Credit warning of 'community revolt' if coronavirus boost is scrapped

Former Prime Minister Gordon Brown is the latest to add his voice in calls to enforce the Universal Credit coronavirus boost.

He has warned of a “community revolt” if the bonus does not become a fixture in the welfare system.

The additional £ 1,040 per annum was added to Universal Credit in April on top of an increase in line with inflation.

But that extra money, about £ 20 a week or £ 80- £ 90 in a plaintiff’s standard monthly payment, is expected to expire in April 2021.

Working tax credit claimants also received a similar boost, with the base element increasing by £ 1,045 per year.

In a speech to the Resolution Foundation, Mr. Brown warned that failure to act urgently to avoid the increased payments being scrapped next spring will lead to “community revolt.”

He said research by the foundation showing that unemployment and lower wages had already cut the income of millions of families was a “must read” for the government.

Mr Brown said: “Urgent action is now needed as the planned £ 20 withdrawal from weekly Universal Credit payments in March will automatically add 700,000 more poverty, including 300,000 children, as £ 6 billion in purchasing power is removed from a already fragile economy.

“500,000 of the already poor will end up in even deeper poverty if they lose £ 1,000 a year.

Add to this the impact of rising unemployment, rising food prices and the ongoing impact of the two-child limit and the limit on benefits and other cuts in Social Security that have now been set in motion, and we are facing deteriorating social security. crisis in the new year.

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“ I am making this call for urgent action after reviewing the Resolution Foundation’s current major study, which shows that unemployment and lower wages have already cut the household income of the poorest 20 percent and millions of families are under the pressure of Christmas with declining savings or savings cut to zero, and thus little money to buy even the most basic Christmas presents for their children without going into debt. “

Mr Brown said the true value of child benefits must be increased to prevent child poverty from falling to levels not seen since the official data began.



What were the increases in universal credit?

Universal Credit received a 1.7 percent inflation boost at the end of the benefits freeze in April 2020, then added another £ 80- £ 90 a month to help plaintiffs during the coronavirus crisis.

For a single Universal Credit claimant under 25, the monthly standard payout got an inflation boost from £ 251.77 to £ 256.05 and then the coronavirus boost took it further to £ 342.72.

For a single Universal Credit claimant aged 25 or older, the standard monthly fee got an inflation boost from £ 317.82 to £ 323.23 and then the coronavirus boost took it further to £ 409.89 per month.

For a couple where both Universal Credit claimants are under 25, the standard monthly fee got an inflation boost from £ 395.20 to £ 401.92 and then the coronavirus boost took it further to £ 488.59.

For a couple where one of the Universal Credit claimants is 25 or older, the standard monthly fee got an inflation boost from £ 498.89 to £ 507.37 and then the coronavirus boost took it back up to £ 594.04.

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