William Eichler 26 August 2021

Universal Credit cuts to force two million people into debt

Universal Credit cuts to force two million people into debt image

Government plans to cut Universal Credit this October could push 2.3 million people into the red, Citizens Advice warns.

The Department for Work and Pensions plans to cut Universal Credit by £20 a week starting in October.

However, a survey of over 2,000 people on Universal Credit shows more than a third (38%) would be in debt after paying just their essential bills if their benefits drop by £20 a week. This is equivalent to at least 2.3 million people.

The figure rises to nearly half (49%) people on Universal Credit in ‘Red Wall’ areas.

The average shortfall for people tipped into the red would be £51 a month, increasing to £55 a month in ‘Red Wall’ areas.

Dame Clare Moriarty, chief executive of Citizens Advice, commented: ‘A cut to Universal Credit this autumn will be a hammer blow to millions of people.

‘It undermines our chance of a more equal recovery by tipping families into the red and taking money from the communities most in need.

‘The Government must listen to the growing consensus that it should reverse course and keep this vital lifeline.’

SIGN UP
For your free daily news bulletin
Highways jobs

Senior/Principal Regeneration Officer

Fareham Borough Council
£45,465 - £55,379
Our town centre regeneration is moving from planning to delivery, and we're looking for someone who wants to help make regeneration happen. Fareham, Hampshire
Recuriter: Fareham Borough Council

Director of Law & Corporate Governance (Monitoring Officer)

Northumberland County Council
£ 143,779 - £158,197
With the forthcoming retirement of our current postholder, we are seeking an outstanding leader Northumberland
Recuriter: Northumberland County Council

Assistant Director of Finance (DS151)

Rochdale BC
£82,028 - £94,797 + £7,000 responsibilities allowance
This is an influential role, offering the opportunity to lead established teams across finance, revenues and benefits, internal audit Rochdale, Greater Manchester
Recuriter: Rochdale BC

Head of Economic Development

Redbridge London Borough Council
£91,977 - £95,592
We’re looking for somebody who can build local and regional networks and foster positive relationships London (Greater)
Recuriter: Redbridge London Borough Council

Head of Leisure & Culture

Redbridge London Borough Council
£103,263 - £107,322
A major part of the role is fulfilling the role of ‘client’ in relation to our outsourced Leisure and Culture provision London (Greater)
Recuriter: Redbridge London Borough Council
Linkedin Banner