16/09/2021
Keep the lifeline: Why the Universal Credit uplift is crucial for millions of families
This October the UK government plans to cut Universal Credit and Working Tax Credit by £20 a week; money which has been a lifeline for nearly six million families across the country, who are already struggling to make ends meet.
This cut from 6 October will be a devastating blow for millions of low-income households, pulling people into poverty and leaving many unable to afford the everyday essentials they need. Around 5.5 million families will see an overnight loss of £1,040 per year and will be left to make tough decisions between feeding their children or keeping their homes warm this winter.
At the start of the pandemic the Government took the decision to uplift the standard allowance in Universal Credit and Working Tax Credit by £20 per week. This was in response to the economic conditions at the time, which included rising unemployment rates and many people on furlough or in low paid jobs.
The Keep the Lifeline campaign, led by the Joseph Rowntree Foundation and backed by many charities, is rightly calling for this overnight cut to not go ahead and to prevent 500,000 people, including 200,000 children, from being swept into poverty.
Marie-Claire Delbrouque, Managing Director of Samphire Homes said: “During and since the pandemic, thousands of our tenants have spoken to us about their financial hardship and worries of losing their home and we have pledged to support them.
“My fear is that tenants will be forced to make impossible decisions between feeding their children, heating their home and paying their rent. That’s an unacceptable choice for any family to have to make and we must do what we can to prevent this.”
According to data released by the Department for Work and Pensions (DWP), the number of people claiming Universal Credit has doubled since the start of the pandemic, from three million in March 2020 to six million at the start of 2021.
Unemployment also hit a five-year high at the end of 2020, with 1.74 million people out of work, which left thousands more people relying on the social security safety net to stay afloat. As a Group we recognised this and Hopestead, our charity to end homelessness, launched its coronavirus assist initiative, helping to write off people’s rent arrears which occurred as a result of covid.
Recent research conducted by You Gov has helped to uncover the very real impact that this cut will have on people living on low incomes. 1 in 10 people receiving universal credit said that they are ‘very likely’ to not be able to cook food because they won’t be able to afford to use an oven and 1 in 5 people said they will struggle to heat their homes this winter.
Marie-Claire added: “Taking the lifeline away could mean cutting peoples income by as much as 21%. When income is reduced, we know that it has a negative impact on the physical and mental wellbeing of our tenants and their families.”
The pandemic has shown that none of us know what is around the corner and that social security should be strong enough for us to rely on. The government must protect everyone’s right to an adequate standard of living and support families to get back on their feet, rather than increasing chances of debt and harm to wellbeing.