UK Government urged to rethink decision to scrap Universal Credit increase

The UK Government has been urged to rethink the decision to scrap the increase to Universal Credit.

The SNP have urged the Government to extend the Universal Credit increase

The SNP have warned dropping the £20 increase will not just hit the poorest of society but also damage the economy.

First introduced in April 2020, the rise was intended to help some of the UK’s poorest individuals and families through the coronavirus crisis.

Universal Credit recipients saw their standard allowance in Working Tax Credit and Universal Credit increased by £20 per week on top of planned annual uprating, representing a monthly raise for a single claimant over 25 from £317.82 to £409.89.

Despite warnings from the Joseph Rowntree Foundation that social security can help the economy, there is no sign of the increase being extended past April 2021.

The SNP’s Shadow Work and Pensions Secretary Neil Gray MP called for the UK Government to “see sense”.He said: “At a time when the economy is so weak, the UK government would not cut planned infrastructure projects so why do Boris Johnson and Rishi Sunak think it makes sense to slash what is a lifeline for so many. The maths doesn’t add up – it is clear that this is a political decision.

"The Tory government is taking the UK towards a devastating winter of mass redundancies and soaring poverty, which will cause lasting harm to our communities for many years to come.

"They must think again – stop the cuts to universal credit and extend the £20 increase to legacy benefits, extend the furlough scheme, and devolve financial powers to the Scottish Parliament.”

It comes as the CBI warned the country faces a “stark choice” between investing in workers’ skills and lifelong learning or suffering sustained rates of high unemployment.The business group today warned nine out of 10 people will need new skills by 2030 to support the future economy, requiring an additional £13 billion a year.

The CBI claimed its analysis also showed failure to invest in skills will harm the livelihoods of the most disadvantaged, with lower-skilled jobs most at risk.

CBI director-general Dame Carolyn Fairbairn said: “Ensuring people can adapt to the changing world of work will be one of the most important missions this country embarks on in the next decade. The economic impact of Covid-19 makes starting now only more urgent.

“The right skills strategy can help every worker to progress their careers, drive up living standards and level-up the country.

“But a failure to act will leave businesses facing skills shortages and workers facing long-term unemployment. We are at a fork in the road that requires urgent and decisive action.”

Yesterday the SNP's Westminster leader Ian Blackford accused the UK Government of creating a "dangerous concoction" by failing to get a Brexit deal at a time they were ending financial support for the public.

He said: "The Tory government's dangerous concoction of pulling crucial financial support and pursuing its reckless and extreme Brexit plans in the middle of a pandemic is leading the UK to the point of no return - and it will be hard-working employees, businesses and households that will be forced to pay the price of the fallout.”

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