Universal Credit will be worth less than it was in 2013 if £20 cut goes ahead, charity warns

Universal Credit will be worth less than it was in 2013 if the £20 cut goes ahead, a charity has warned.

Universal Credit will be worth less than it was in 2013 if £20 cut goes ahead, a charity has warned.

Analysis from Citizens Advice Scotland (CAS) has claimed that Universal Credit (UC) will fall below its 2013 value in real terms if plans to end the £20 uplift are not reversed.

The £20-per-week uplift to UC was introduced by the UK Government last spring, but as of yet they have refused to extend it beyond this April.

Now CAS claims it would mean Scots have less than they would have done eight years ago due to inflation, with the payment being worth 11.5 per cent less.

They warn for some claimants the monthly standard allowance will fall by as much as 25 per cent.

CAS spokesperson Nina Ballantyne said: “More people than ever are claiming Universal Credit.

“Currently 480,000 people in Scotland claim it, but many of them have families to support, so the numbers of people who rely on it is very significant and includes children.

“The pandemic has caused redundancy and reduced hours, and this looks set to continue for much of the year. Now is the time to strengthen the safety net for these families, not cut it.

“Universal Credit has always failed to keep up with the cost of living and it makes no sense to make cuts during a pandemic.

“Without proper support, we’ll see increases in poverty and foodbank use, and a strain on other public services like the NHS.”

This week the Department for Work and Pensions and Women and Equalities committee called on Chancellor Rishi Sunak to ditch plans for a one-off cash payment and keep the uplift.

They warned cutting the £1,000-a-year boost for families would "plunge hundreds of thousands of households, including children into poverty" while dragging those already in poverty "down into destitution".

A UK Government spokesperson said: “We are committed to supporting the lowest-paid families through the pandemic, which is why we’re spending hundreds of billions to safeguard jobs and boosting welfare support by billions.

"The UK Government has also provided an additional £8.6 billion in funding this financial year to the Scottish Government to tackle the pandemic.

"This is on top of the block grant and in addition to direct UK Government support to people and businesses in Scotland.”

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