UNIVERSAL Credit claimants should continue to receive an extra £20 a week following the coronavirus crisis, MPs have urged.
Chancellor Rishi Sunak boosted the standard allowance – the amount that everyone is entitled to if they’re accepted onto Universal Credit – in April.
Universal Credit claimants should continue to receive an extra £20 a week following the coronavirus crisis, MPs have urged
It was rolled out as a temporary measure for 12 months due to the pandemic, applying to all new and existing Universal Credit claimants.
It means that for a single Universal Credit claimant, who’s 25 or older, the standard allowance increased from £317.82 to £409.89 per month.
The standard allowance is set at different levels for those who are under 25 or for those who are in a couple.
In March, the government also suspended sanctions and the requirement to meet job coaches but this was only for three months.
But the latest Treasury Committee’s report looking into the economic impact of coronavirus is now calling for an extension of the “generosity and accessibility” of Universal Credit.
The report, which focuses on the medium-term challenges that emerge as lockdown is eased, also urges Mr Sunak to consider targeted extensions to the furlough scheme, which is set to end in October.
Torsten Bell, chief executive of the Resolution Foundation think tank, said the report should be “required reading” for Treasury officials planning the Autumn Budget.
He said: “Extending support for the hardest hit sectors of the economy will be essential to limit the rise in unemployment Britain faces in the months ahead.
“The government will also need to shelve plans to cut back Universal Credit payments to prevent millions of families from suffering a fresh income shock next spring.”
Separately, the All-Party Parliamentary Group (APPG) on Universal Credit is today also urging the government to continue the support for Universal Credit claimants.
It said the measures should be extended as the economic consequences of coronavirus continue through the recovery.
The group of MPs noted that even prior to coronavirus many Universal Credit claimants were struggling to get by and stay on top of bills – despite a four-year benefits freeze ending in April.
By maintaining the £20 a week increase, it could provide a lifeline to families trying to get back on their feet and will help stop many getting into a spiral of debt, the report said.
The APPG on Universal Credit is also calling for the ban on sanctions to be reintroduced, given the current struggles of getting a job with fewer opportunities available.
Debbie Abrahams, chair of the group, said: “The coronavirus pandemic saw a huge and sudden increase in claimants.
“As the furlough scheme comes to an end in the next few weeks, this is likely to increase even further.
“It is more important than ever that we make sure that Universal Credit is better able to meet the needs of claimants and provide the timely financial support they need while they work to get another job or start a business.
“Becoming a Universal Credit claimant should not be associated with debt, poverty, homelessness or ill. But for too many it is.”
A spokesperson for the Department for Work and Pensions (DWP) told HOAR: “We are wholly committed to supporting the lowest paid families and our policies, in particular those related to the pandemic, are under constant review.
“No one will be sanctioned unless they fail to meet the agreed conditions of their claimant commitment without good reason.”
Parents are being urged to check if they can get back to school help – from tax credits to free meals and uniforms.
Meanwhile, families on certain benefits, including Universal Credit, are currently being given free bags of frozen veg at Iceland.
Plus, we explain the she six perks millions on Universal Credit are missing out on, including help with childcare costs and public transport.
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