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

Team Leader – Traffic Network Management

Hounslow London Borough Council
£52,194 – £57,402
We’d love you to join us at the London Borough of Hounslow! Hounslow (City/Town), London (Greater)
Recuriter: Hounslow London Borough Council

Director of Young People and Opportunities

Newham London Borough Council
£98,994 - £120,507
A defining role for young people in Newham Newham, London (Greater)
Recuriter: Newham London Borough Council

Building Compliance & Reactive Works Manager

East Devon District Council
£36,363 - £42,839
We have an exciting opportunity for a Building Compliance & Reactive Works Manager to join our Buildings and Facilities Management Team. Devon
Recuriter: East Devon District Council

Programme Director – Local Government Reorganisation

Staffordshire County Council
£Competitive
Lead one of the most significant local government transformation programmes in England! Staffordshire / Stoke on Trent
Recuriter: Staffordshire County Council

Executive Director – Place and Prosperity

South Derbyshire District Council
£106,484 up to £115,687 plus an essential car user allowance is also paid.
We are seeking an exceptional Executive Director to help shape the future of South Derbyshire at a pivotal moment in its history. Swadlincote, Derbyshire / Agile
Recuriter: South Derbyshire District Council
Linkedin Banner