Universal Credit

(asked on 9th September 2021) - View Source

Question to the Department for Work and Pensions:

To ask Her Majesty's Government what modelling they have conducted on the impact of ending the £20 uplift for Universal Credit on (1) homelessness, (2) poverty, and (3) food bank usage; and what the modelling predicted the impact would be for each issue.


Answered by
Baroness Stedman-Scott Portrait
Baroness Stedman-Scott
Opposition Whip (Lords)
This question was answered on 21st October 2021

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 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 £407 billion in 2020-21 and 2021-22.

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.

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. Our Plan is working, as we see record numbers of job vacancies and numbers of employees on payrolls back at pre-pandemic levels.

However, 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 and allocations to individual local authorities are set out below. 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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