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

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

Former Prime Minister Gordon Brown is the last to add his vote on calls to keep the coronavirus boost for Universal Credit.

He has warned of a “community revolt” if the bonus is not made an integral part of the welfare system.

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

However, that extra cash, around £ 20 per week or £ 80 to 90 in an applicant’s standard monthly payment, is expected to end in April 2021.

Applicants for labor tax credits also received a similar boost, with the base item increasing by £ 1,045 per year.

Speaking to the Resolution Foundation, Mr. Brown warned that failure to act urgently to prevent the stepped-up payments from being scrapped next spring will result in a “community revolt”.

He said research by the foundation showing that unemployment and reduced wages have already cut the incomes of millions of families is a “must” for the government.

Mr Brown said: “Action is urgently needed now as the proposed £ 20 deduction from weekly universal loan payments in March will automatically put 700,000 more people into poverty, including 300,000 children, as £ 6 billion of purchasing power will be removed from an already fragile economy.

“500,000 of the already poor will fall into deeper poverty as they lose 1,000 pounds a year.

“Add to this the impact of rising unemployment, rising food prices, and the ongoing impact of the two-child limit, as well as the cap on benefits and other social security cuts that are currently on the train, and we face a tightening New Year social crisis.

“I urge action after reading today’s major Resolution Foundation study that shows that unemployment and reduced wages have already slashed family incomes for the poorest 20 percent and that millions of families face the pressures of Christmas with declining savings or savings exposed are reduced to zero and therefore little money to buy even the simplest Christmas presents for your children without running into debt. “

Mr Brown said the true value of child support needs to be increased to prevent child poverty from falling to levels that have not been seen since official records began.

What were the universal credit increases?

Universal Credit saw a 1.7 percent inflation spike at the end of the April 2020 benefit freeze, and then added an additional £ 80-90 per month to help applicants during the coronavirus crisis.

For a single Universal Credit applicant under the age of 25, the standard monthly allowance received a surge in inflation from £ 251.77 to £ 256.05 and the coronavirus surge then continued to rise to £ 342.72.

For a single Universal Credit applicant 25 and older, the Standard Monthly Allowance received a surge in inflation from £ 317.82 to £ 323.23, and the coronavirus surge then continued to climb to £ 409.89 per month.

For a couple with both universal loan applicants under 25, the inflation rate was increased from £ 395.20 to £ 401.92 and the coronavirus increase continued to rise to £ 488.59.

For a married couple where one of the Universal Credit applicants is 25 years and older, a surge in inflation increased the standard monthly allowance from £ 498.89 to £ 507.37 and the coronavirus surge rose again to £ 594.04.

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