Commons Sense

House of Commons · Ministers' Questions

End of Universal Credit Uplift

Monday 13 December 2021 · 5 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 5 Not answered 0

Key points

  • The uplift to universal credit was a temporary measure, so no impact assessment was completed on its withdrawal.
  • The Government provided 140 million in discretionary housing payments to councils to address housing benefit issues.
  • The Secretary of State mentioned the planned increase in the national minimum wage as a benefit for those with caring responsibilities.

Topics (select to filter)

Questions & Answers

Q1 Mary Glindon Lab Newcastle upon Tyne East and Wallsend
Benefits & Welfare
Context

The question arises from the removal of a £20 increase in standard allowance for universal credit, which was previously provided as temporary support. The MP is concerned about the financial impact on household budgets.

Question

What assessment has been made of the impact of removing the £20 uplift to the standard allowance of universal credit on household budgets?

Answer from Therese Coffey

The uplift to universal credit was a temporary measure, so we have not completed an impact assessment on its withdrawal.

Partly answered

Not addressed: The specific impact of removing the £20 uplift on household budgets has not been assessed.

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Q2 Layla Moran Lib Dem Oxford West and Abingdon
Housing Benefits & Welfare
Context

Charities have warned that the removal of the £20 uplift from Universal Credit could cause 100,000 people to face homelessness. Additionally, a freeze on housing benefits is causing more families to struggle with rent payments.

Question

Charities warn that the cut to universal credit would risk 100,000 people falling into homelessness, yet the Government ploughed on with it. Added to that is the freeze to housing benefits, with the result that more families cannot afford their rent and risk losing the roof over their head. Can the Secretary of State tell us how many people she expects to fall into homelessness, and what the Government are going to do about it?

Answer from Therese Coffey

We have provided £140 million of discretionary housing payments to councils, specifically to target that element. We boosted the local housing allowance in the covid Budget of 2020, and we have kept it at that rate.

Partly answered

Not addressed: The number of people expected to fall into homelessness is not provided.

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Q3 Helen Hayes Lab Dulwich and West Norwood
Employment Benefits & Welfare
Context

Many constituents with caring responsibilities can only work part time at low wages. The removal of the £20 uplift means they may lose more than they could gain from reduced taper rates.

Question

Many of my constituents have caring responsibilities and can only work part time, often at low wages. Does the Secretary of State recognise that families in this situation will generally lose more from the £20 a week cut to the standard allowance than they could ever hope to gain from the reduced taper? What does she have to say to those families?

Answer from Therese Coffey

I respect that people undertake care, and I am conscious that they often choose to do it in partnership with their local authority. We want to make sure that people take advantage of the increase in the national minimum wage, which will be coming in from April 2022.

Partly answered

Not addressed: The specific impact on part-time workers due to universal credit changes is not addressed.

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Q4 Tonia Antoniazzi Lab Gower
Benefits & Welfare
Context

The Resolution Foundation's analysis found that despite the taper rate and work allowance increases, the cost of living will offset any benefits due to the removal of the £20 uplift.

Question

Although the recent changes to the taper rate and the work allowance are welcome, they simply do not go far enough. The Resolution Foundation's analysis found that huge increases in the cost of living will wipe out any gains. Even with these changes, three quarters of families on UC will still be worse off than if they had kept the £20 uplift to the standard allowance. Does the Secretary of State now see that countless organisations and even former Tory Work and Pensions Ministers argued for the uplift to be made permanent were actually right?

Answer from Therese Coffey

I am conscious of what the hon. Lady says, and I am sure she welcomes the £25 million of the £0.5 billion spent on the household support fund over this winter.

Partly answered

Not addressed: The acknowledgment that the uplift should be permanent is not provided.

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Q5 Mary Glindon Lab Newcastle upon Tyne East and Wallsend
Economy Benefits & Welfare
Context

A survey by Christians Against Poverty found that 67% of its service users will struggle to pay for essentials in the coming months.

Question

A survey by Christians Against Poverty found that 67% of its service users will struggle to pay for essentials in the coming months, with 35% already falling behind with bills and 27% now further into debt. What message does the Secretary of State have for these hard-pressed people in the season of good will?

Answer from Therese Coffey

I am sure the hon. Lady will welcome the £1.6 million that has been given to her local council specifically for targeted support through the household support fund. I am sure she will be as keen as I am to ensure that people seeking work in her constituency get the benefit of the extra work coach support.

Partly answered

Not addressed: The specific message or assistance for those struggling with essentials is not clear.

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