Universal Credit: Rishi Sunak urged to extend uplift - claimants set to be £147 worse off

Ali KhanDec 07, 2020Business

Universal Credit payments were raised by £20 a week by Rishi Sunak in early 2020 as it became clear coronavirus was going to be a long term problem. Millions of families across the UK have had little choice but to apply for state support as the pandemic impacted their incomes and new insight from StepChange revealed just how crucial the uplift has become.

“That’s why we need to see the government commit to making the uplift to Universal Credit permanent as soon as possible.”

Recently, Rishi Sunak laid out his spending review and while many hoped the Chancellor would address the uplift, he did not mention state support at all.

However, following the review it was confirmed the Department for Work and Pensions (DWP) would examine the uplift in early 2021.

On November 25, Thérèse Coffey, the Secretary of State for Work and Pensions, confirmed what the official rates of state pensions and benefits will be in the coming tax year.

Within this confirmation, she addressed the £20 uplift to Universal Credit: “The statutory annual review is separate from the temporary £20 per week uplift to Universal Credit and Working Tax Credit, which was announced by the Chancellor as a temporary measure in March 2020, and enacted for one year under different legislation to support those facing the most financial disruption as a result of the public health emergency.

“As the Government has done throughout this crisis, it will continue to assess how best to support low-income families, which is why we will look at the economic and health context in the new year.”

Currently, Universal Credit payments will be based on specific claimant circumstances but there are standard allowances in place which will be paid out as a minimum.

These allowances are based on a claimant’s age and living situation and are as follows: