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

Supporting Family Time Worker

Durham County Council
Grade 6 £29,071 - £32,046 pro rata to hours worked
We are pleased to offer an exciting opportunity to recruit Sessional Supporting Family Time Workers to join our dedicated team. As a seven-day-a-week Durham
Recuriter: Durham County Council

School Business Manager

Durham County Council
£ 39,481- £43,149
Permanent Contract, Full Time 37 hours per week Term Time Only Required to start 1/12/2026 (Or sooner if possible).   Required from December 2026 (Or Durham
Recuriter: Durham County Council

Nursery Teaching Assistant

Durham County Council
£26,016 - £26,847 pro rata
Required from 2 November 2026 to 16 July 2027.  15 hour per week, Mon - Fri 8.45am-11.45am, term time only plus 2 weeks. The Governors of Wolsingham Durham
Recuriter: Durham County Council

Clerical Officer

Durham County Council
£25,614- £26,016 (Pro Rata)
Permanent contract- Part Time- 27.5 hours per week (9
Recuriter: Durham County Council
Linkedin Banner