Poverty: Coventry

(asked on 22nd October 2021) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what estimate her Department has made of the numbers of people in employment that are living in poverty in (a) Coventry North East constituency and (b) Coventry; and what recent estimate her Department has made of the effect of ending the £20 uplift to universal credit on the levels of in-work poverty in those areas.


Answered by
David Rutley Portrait
David Rutley
Parliamentary Under-Secretary (Foreign, Commonwealth and Development Office)
This question was answered on 29th October 2021

National statistics on the number of people living in in-work absolute low income are set out in the annual "Households Below Average Income" publication. The numbers of people living in in-work absolute low income is not available at constituency or local authority level in this publication because the survey sample sizes are too small to support the production of robust estimates at this geography.

The latest poverty figures (2019/20) demonstrate that absolute poverty rates (both before and after housing costs) for working-age adults in working families have fallen since 2009/10. In 2019/20, 8% of working age adults in working families were in absolute poverty (before housing costs), compared to 9% in 2009/10.

No such assessment has been made of the effect of ending the £20 uplift to universal credit on the levels of in-work poverty in Coventry North East constituency and Coventry.

The Chancellor announced a temporary six-month extension to the £20 per week uplift at the Budget on 3 March to support households affected by the economic shock of Covid-19. Universal Credit has provided a vital safety net for six million people during the pandemic, and the temporary uplift was part of a COVID support package worth a total of £407billion in 2020-21 and 2021-22.

There have been significant positive developments in the public health situation since the uplift was first introduced with the success of the vaccine rollout. With record vacancies, 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.

We have also announced a reduction in the taper rate in Universal Credit from 63% to 55% in the coming weeks, meaning Universal Credit claimants will be able to keep more of their earnings and announced that all work allowances will be increased by £500 per year, meaning many claimants will be able to earn over £550 each month before their benefits begin to be scaled down. These two measures mean 1.9m households will keep, on average, around an extra £1,000 a year.

We recognise that some people may require extra support over the winter as we enter the final stages of recovery, which is why vulnerable households across the country will now be able to access a new £500 million support fund to help them with essentials. The Household Support Fund will provide £421 million to help vulnerable people in England. 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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