Fears of Cut in Universal Credit in April Puts Chancellor Rishi Sunak Under Pressure From Major Charities

COVID-19 - Six million people are claiming Universal Credit. 

According to POLITICO, nearly 1 million people living under local lockdowns face a “jobs cliff edge” when the furlough scheme ends in a few weeks’ time.

Analysis by Labour claims 490,000 people still on furlough are now living under localized restrictions and another 480,000 are living in towns or cities on the national watch list. They say that means thousands of people living in the North and Midlands now risk losing their jobs, including 43,000 people in Birmingham, 19,400 across Durham and 11,500 in Bolton.

Around six million people are on Universal Credit. Charities including the Joseph Rowntree Foundation, Barnado's and the Child Poverty Action Group have urged the government to extend the weekly £20 increase to Universal Credit payments beyond April 2021 or risk plunging millions into poverty.

Universal Credit went up twice in April 2020. The great worry is that in April 2021 Chancellor Rishi Sunak will withdraw the increase to focus on paying the massive borrowing COVID-19 has caused.   

The first increase, on April 1, was at the end of the benefit freeze and saw a 1.7 per cent rise in many social security payouts, including Universal Credit.

There was an additional increase to help people during the coronavirus crisis. This is around £1,000 a year or £80 a month. This increase will be in place for a year.

Universal Credit standard allowance 2020/2021

These amounts include the 1.7 per cent inflation boost and also the coronavirus crisis boost of around £80 a month.

Single and under 25 - £342.72 a month, a rise of £90.95 from previous amount of £251.77

Single and 25 or over - £409.89 a month, a rise of £92.07 from previous amount of £317.82

In a couple and you’re both under 25 - £488.59 a month (for you both), a rise of £93.39 from previous amount of £395.20

In a couple and either of you are 25 or over - £594.04 a month (for you both), a rise of £95.15 from previous amount of £498.89

That is just the standard allowance.

Extra is paid on top if you have children, a disability or health condition, care for a severely disabled person, or if you need more to cover housing costs.

Below are all the top-up payments.

Extra payments if you have children

For your first child - £281.25 (if born before April 6, 2017), £235.83 (born on or after April 6, 2017)

For your second child and any other eligible children - £235.83 per child. Note that there is a two-child limit on money for children born on or after April 6, 2017, so you won't get any extra for a third or subsequent child.

For a disabled or severely disabled child - £128.25 or £400.29

For help with childcare costs - up to 85 per cent of your costs (up to £646.35 for one child and £1,108.04 for 2 or more children)

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