A cut to benefits due to come into force from October could hit one in eight Trafford residents and push them further into debt and hardship, a charity has warned.
Citizens’ Advice Trafford has warned the cut of £20 per week in Universal Credit payments, or £80 a month, will negatively impact those on the lowest incomes – with 36pc of residents set to see their benefits drop are families with children and 39pc are already in work.
Staff and volunteers at the local charity have helped 464 people with Universal Credit since March last year.
It says the £20 a week increase has been a ‘lifeline’ and has supported people who were already struggling before the pandemic as well as those hit by covid job losses.
The charity now warns a cut to the benefit this autumn – as energy bills rise with the colder weather – will see many struggle to afford their essential costs.
It fears a drop in income could be particularly difficult for new benefits claimants who may be unaware of the looming cut.
Jonathan Yates, chief officer of citizens advice SORT group, said: “Every day, our staff and volunteers see the difference the increase to Universal Credit has made to families. It’s what has helped them keep their heads above water.
“Without that extra money, we fear we’d see more people coming to us in debt, unable to pay their bills or turning to food banks because they can’t afford the essentials.
“As we look to rebuild from covid, the government must invest in the benefits system and keep this vital lifeline.”
Trafford council is set to write to the Chancellor Rishi Sunak and Prime Minister Boris Johnson to call for the planned cut to be scrapped.
The Trafford Labour group brought a motion to a full council meeting last week calling for a government rethink, which was passed by a majority vote.
The motion said: “This will reverse the £20 a week increase to Universal Credit made in March 2020. This increase reflected the reality that the level of benefits in the UK does not sufficiently support low and middle income households.
“The increase was a very significant and welcome move to bolster low and middle-income living standards, and cutting it will be a huge loss to the many people who have already suffered hardship during the pandemic.
“The £20 increase was welcome given the backdrop of ten years’ worth of cuts to working age benefits that have driven up child and working age poverty.
“The cut will significantly damage local efforts to tackle poverty, undermining the work of Trafford council and partners.
“The £20 increase in Universal Credit has had a positive effect on the lives of thousands of local claimants who are better able to pay for life’s essentials such as food, clothing and utilities. The financial pressures facing these households will still be there after September.”
The motion also warned the cut would take thousands of pounds out of the local economy in Trafford and affect the area’s post-pandemic recovery.
It also highlighted the impact the cut would have on unpaid carers in the region.
In the letter to government, the council will demand that the £20-per-week increase in Universal Credit payments made in March 2020 should be made permanent and it should be extended to people on legacy benefits too – including those on Carers Allowance.
