Universal Credit: West Midlands

(asked on 22nd September 2021) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what assessment her Department has made of the impact of the end to the £20 a week universal credit uplift on household incomes in (a) Birmingham Ladywood constituency, (b) Birmingham City region and (c) the West Midlands.


Answered by
David Rutley Portrait
David Rutley
Parliamentary Under-Secretary (Foreign, Commonwealth and Development Office)
This question was answered on 18th October 2021

No such assessments have been made of poverty levels or household incomes in Birmingham Ladywood, Birmingham City region or the West Midlands.

It is not possible to produce a robust estimate of the impact of removing the £20 uplift on poverty or related issues. This is due to the uncertainty around the speed and distribution of the economic recovery.

The latest poverty figures (2019/20) demonstrate that absolute poverty rates (both before and after housing costs) have fallen since 2009/10. In 2019/20, 14% of people were in absolute poverty (before housing costs), compared to 16% in 2009/10. This government believe that work is the best way out of poverty, and the latest statistics (2019/20) show that children in workless households are around 5 times more likely to be in absolute poverty, before housing costs, than those where all adults work.

There have been significant positive developments in the public health situation since the uplift was first introduced. With the success of the vaccine rollout and record job vacancies, it is right that our focus is on helping people back into work. This approach is based on clear evidence about the importance of employment, particularly where it is full-time, in substantially reducing the risks of poverty.

Through our Plan for Jobs, we are targeting tailored support schemes of people of all ages to help them prepare for, get into and progress in work. These include: Kickstart, delivering tens of thousands of six-month work placements for Universal Credit claimants aged 16-24 at risk of unemployment; we have also recruited an additional 13,500 work coaches to provide more intensive support to find a job; and introduced Restart which provides 12 months’ intensive employment support to Universal Credit claimants who are unemployed for a year. Our Plan for Jobs interventions will support more than two million people.

We recognise that some people continue to require extra support, which is why we have introduced a £421 million Household Support Fund to help vulnerable people in England with essential household costs over the winter as the economy recovers. The Barnett Formula will apply in the usual way, with the devolved administrations receiving almost £80 million (£41m for the Scottish Government, £25m for the Welsh Government and £14m for the NI Executive), for a total of £500 million.

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