Universal Credit Covid-19
2020-10-20
TAGS
Response quality
Questions & Answers
Q1
Partial Answer
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Context
The temporary £20 per week increase in universal credit was introduced during the pandemic. The question assesses the economic effects of removing this uplift while the outbreak continues.
What assessment has been made of the effect on the economy of removing the temporary uplift in universal credit from April 2021 while the covid-19 outbreak continues?
The £20 per week increase in the universal credit standard allowance and working tax credit basic element forms just one part of the package of support the Government have provided to protect people's jobs and incomes, including income support schemes.
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Assessment & feedback
Specific economic assessment was not provided.
Forms Just One Part Of The Package Of Support
Protecting People'S Jobs And Incomes
Response accuracy
Q2
Partial Answer
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Context
The previous question discussed the temporary increase in universal credit. This supplementary question asks about maintaining these benefits as a stimulus measure.
Surely, it would now be inconceivable to remove those increases in April as planned, before the pandemic is even over. Does the Minister accept that of the indirect levers available to the Government to stimulate what is, as we have heard already, going to be a weak economy for some time, measures that raise the incomes of low-income households are the most effective, and benefit increases are a good example?
I am grateful that the right hon. Gentleman recognises the additional £9 billion of support that my right hon. Friend the Chancellor has put into welfare. That is reflected, as the right hon. Gentleman will further recognise, in the distributional analysis showing that that has protected those on the lowest incomes. That support is temporary, but it does extend to the spring, and it helps those families facing covid with the challenges over the coming months.
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Assessment & feedback
Commitment to maintain benefit increases was not addressed specifically.
The Right Hon. Gentleman Recognises The Additional £9 Billion
Support Is Temporary
Response accuracy