Universal Credit cut is final decision and will NOT be reversed, says No 10

THE £20 a week cut to Universal Credit from next month is the 'final decision' and will not be reversed, No10 indicated today.

Boris Johnson's spokesperson stressed that he had made a call not to extend the Covid uplift, meaning a real-terms cut for benefits for millions of families within weeks.

Ministers argue that it was only ever designed to be a temporary extra £1040 per year, and that it was always going to be cut down again.

The PM has said repeatedly he wants to focus on getting people into work – even though thousands on the benefit are already working.

It's been in place since April last year and has been a lifeline for thousands of claimants who have had their finances hit by the pandemic.

The PM's spokesperson was asked today whether the Universal Credit decision was final, or the position was under review.

He replied: "No, the position on this as it has been set out.

"The uplift of UC was always temporary to support people through the toughest stages of the pandemic."

The DWP have not produced a formal impact assessment of the cut, the Daily Mirror reported today.

Thousands are worried about how they will pay the bills once the cut comes in.

It is also the biggest overnight cut to the basic rate of social security since the Second World War.

Last week Work and Pensions Secretary Therese Coffey confirmed it will come in from the end of September.

She said: “Now the economy has reopened it is right that the Government should focus on supporting people back into work and supporting those already employed to progress in their careers.

“Our ambition is to support two million people to move into and progress in work through our comprehensive £33billion Plan for Jobs.”

The cut comes just as families are facing a fuel price hike, energy costs increasing and back-to-school expenditure too.

Analysis from the foundation shows it risks plunging 500,000 people into poverty, including 200,000 children too.

Citizens Advice also warned that 2.3million people will be plunged into debt following the cut.

The average shortfall for people tipped into the red would be £51 a month.

How much will I lose?

Universal Credit claimants will lose £20 a week from their benefit payments and over the year that adds up to a loss of £1,040.

Here's how much money you'll lose from your monthly payments, with rates for the 2021-22 tax year, before and after the uplift:

  • For those single and aged under 25, the standard allowance with the uplift is £344 – after the uplift is cut that will fall to £257.33
  • For those single and aged 25 or over, the standard allowance with the uplift is £411.51 – after the uplift is cut that will fall to £324.84
  • For joint claimants both under 25, the standard allowance with the uplift is £490.60 (for both) – after the uplift is cut that will fall to £403.93
  • For joint claimants where one or both are 25 or over, the standard allowance with the uplift is £596.58 (for both) – after the uplift is cut that will fall to £509.91

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