More than a third of children living in Renfrewshire are set to be plunged even deeper into poverty as the £20 uplift to Universal Credit is removed.
More than 7,000 children living in the local authority area are to see £1,040 a year stripped from their household incomes as the weekly payment is removed next month.
The Citizen’s Advice Bureau (CAB) says its removal will put 38 per cent of people in receipt of the benefit in debt after paying just their essential bills.
The uplift was introduced in April 2020 to help those who had lost income due to the pandemic.
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But its removal from parents in receipt of Universal Credit and Working Tax Credits in Renfrewshire will have a “catastrophic” impact on youngsters, community leaders have said.
Data provided published by the Joseph Rowntree Foundation yesterday revealed that 40 per cent of youngsters in the Paisley and Renfrewshire South Ward will be affected by the removal of the £20 payment and 33 per cent of children in Paisley and Renfrewshire North.
Dan Lockyer, of Renfrewshire CAB, said his organisation has repeatedly shown that Universal Credit simply does not pay enough to cover life’s basic costs.
“The withdrawal of the £20 uplift in Universal Credit is potentially catastrophic for individuals and families in Paisley and the wider Renfrewshire area,” he said.
“Families who only qualified for a small amount of Universal Credit, and will therefore lose their entire award when UC is reduced for everyone else are potentially much more than £20 down on income.
“For example, we had a client this week (let’s call her Ann) who works full time for take home pay of £295 per week.
“Her partner is on Employment Support Allowance as he recovers from significant ill health and they live in a mortgaged property with one young child.
“She will not only lose her £17.19 per week Universal Credit entitlement, but as she no longer gets UC, she will lose the £10 weekly Scottish Child Payment, and potentially won’t be eligible for the one off school age payment for their child of £252.50.
“When her partner became ill last year, they fell behind with their mortgage. Although they have a payment plan in place, this may not be sustainable with a loss of around £120 per month, and Ann is panicking.”
The Joseph Rowntree Foundation has used the latest official data to produce a comprehensive analysis of which parliamentary constituencies will be most affected by the scheduled cut to Universal Credit and Working Tax Credit.
Katie Schmuecker, the charity’s deputy director of policy and partnerships, said: “This latest analysis lays bare the deep and far-reaching impact that cutting Universal Credit will have on millions of low-income families across Britain.
“Plunging low-income families into deeper poverty and debt as well as sucking billions of pounds out of local economies is no way to level up.
“It’s not too late for the Prime Minister and Chancellor to listen to the huge opposition to this damaging cut and change course.”
Responding to the report, a government spokesperson said: “The temporary uplift to Universal Credit was designed to help claimants through the economic shock and financial disruption of the toughest stages of the pandemic, and it has done so.
“Universal Credit will continue to provide a vital safety net and with record vacancies available, alongside the successful vaccination rollout, it’s right that we now focus on our plan for jobs, helping claimants to increase their earnings by boosting their skills and getting into work, progressing in work or increasing their hours.”
