Hundreds of thousands of people are set to be plunged into poverty if Tory ministers go ahead with plans to cut Universal Credit next month, cross-party MPs have warned.
Work and Pensions Secretary Therese Coffey has become the latest voice to reject the calls from MPs to retain the £20-a-week pandemic boost, which was introduced in Spring 2020.
Cross-party MPs on the Commons Work and Pensions had appealed to Dr Coffey to U-turn on the plans to remove the £20-a-week payment, which has given low-income families a boost of £1,040 a year.
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The calls to keep the payment in place were also backed by committees in Scotland, Wales and Northern Ireland.
But in a letter published today, Dr Coffey reiterated that the boost would be removed in October.
The Work and Pensions Secretary 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 £33 billion Plan for Jobs.”
Dr Coffey’s comments come after remarks from Prime Minister Boris Johnson last week saying that people relying on Universal Credits should use ‘their efforts’ to claim fewer benefits.
Boris Johnson said: “My strong strong preference, and I believe this is the instinct of most people in this country, is for people to see their wages rise through their efforts…rather than welfare”
DWP Committee chairman Stephen Timms criticised Dr Coffey’s “dismissive response” whilst also warning that the Government was ignoring the damage the UC cut will do to many working families in the coming months.
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Mr Timms said: “The £20 cut will plunge hundreds of thousands into poverty.
“The Secretary of State’s dismissive response to our letter suggests that the Government is still in denial about the impact of ending the increase.
“The Government’s new employment support schemes are welcome, but 40% of Universal Credit claimants are already in work.
“The cut will hit many working families hard.”
As of January 14, 2021, there were 6 million people in England claiming Universal Credit, with 40% of these people currently in some form of work but still requiring additional payment.
In Liverpool, there are currently 170,000 Universal Credit claimants.
