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

Transport and Major Work Manager

Slough Borough Council
£54,556 to £60,085 per year Inclusive of Local Weighting Allowance of £1096
Drive the future of transport and infrastructure in Slough Slough, Berkshire
Recuriter: Slough Borough Council

Trading Standards Professional Apprentice

Essex County Council
£27869.00 - £32787.00 per annum + Pension
Trading Standards Professional ApprenticeFixed Term, Full Time£27,869 up to £32,787 per annumLocation
Recuriter: Essex County Council

Associate Director for Financial Management (Deputy Section 151 Officer)

Dudley Metropolitan Borough Council
£108,015 - £118,000 pa
Operational leadership that turns strategy into reality. Dudley, West Midlands
Recuriter: Dudley Metropolitan Borough Council

Director of Finance (Section 151 Officer)

Dudley Metropolitan Borough Council
Competitive
The strategic voice of finance at the heart of Dudley. Dudley, West Midlands
Recuriter: Dudley Metropolitan Borough Council

Director of Commissioning, Procurement & Contract Management

Sheffield City Council
£99k - £103k
When you’re spending ten figures a year, you need to be way beyond just asking ‘how many, and how much? Sheffield, South Yorkshire
Recuriter: Sheffield City Council
Linkedin Banner