Universal credit reduction will have “catastrophic” impact, government official says

A government official said official forecasts show that the next cut in universal credit will have a catastrophic impact.

Insider Complaints Assessments have been made on the effects of removing the £ 20 a week coronavirus supplement from October.

Universal credit was increased by £ 1,040 per year during the pandemic, with this increase in the standard allowance extended for half of this fiscal year before it ends.

READ MORE: Universal credit seekers rant over “hidden” payment cut alerts

Asked in July to publish the impact assessment of DWPs, Minister Will Quince replied: “No assessment has been done.”

But today, a Whitehall official suggested that some sort of forecast had been made – and it showed serious damage from the cut in benefits.

The official told Financial Time : “The internal modeling of the end of the UC uprising is catastrophic.

“Homelessness and poverty are likely to increase, and the use of food banks will skyrocket. It could be the real disaster of fall.

The newspaper reported that a minister warned: “There is no doubt that this is going to have a serious impact on thousands of people and colleagues are really worried, I think it will definitely overshadow social care as a political problem. It’s not just the Red Wall MPs. who fear a major backlash from the public. “

In July, the Joseph Roundtree Foundation – an independent social change organization working to solve poverty in the UK – said the drop in payments meant the UK was heading for the biggest cut in the base rate in the UK. day-to-day social security since the founding of the modern welfare state. than 70 years ago.

He warned that half a million more people are expected to fall into poverty, including 200,000 children.

Working families constitute the majority of families that will be affected by the cuts, he said.

Families with children will be disproportionately affected, JRF argued. About six in ten single-parent families will see their income fall by the equivalent of £ 1,040 per year due to the reduction in UC or WTC.

And he said that despite a commitment to ‘level up’, the impact of the reduction will be greatest in northern England, Wales, the West Midlands and Northern Ireland.

Katie Schmuecker, Deputy Director of Policy and Partnerships for JRF, said: “The public deserves to know what impact the government will have on this reduction. be devastating for millions of families.

“They should publish their analysis on the impact of the cut as soon as possible.”

READ MORE: DWP benefit claimants could get £ 1,500 boost in legal battle against increase in universal credit

A government spokesperson said: “Universal Credit has provided a vital safety net for six million people during the pandemic, and we announced the temporary increase as part of a £ 400 billion package. sterling set up that will last well beyond the end of the road map.

“We are now focused on our multibillion pound jobs plan, which will support people in the long run by helping them learn new skills and increase their hours or find new work.”

The government has insisted that the regime’s recovery has never been more than a temporary intervention.

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