End of Universal Credit Uplift: Household Budgets

8. What assessment she has made of the potential effect of ending the universal credit uplift on household budgets.

The Government have always been clear that the £20 uplift was a temporary measure to support households affected by the economic shock of covid-19. Now that the economy has reopened, the Government are giving nearly 2 million working households an increase, on average, of £1,000 per year, thanks to the reduction in the universal credit taper rate from 63% to 55% and a £500 increase in the work allowance.

More than 9,000 Sheffield households, including 4,500 children, have together lost around £10 million as a result of the Government’s decision, and the taper adjustment compensates for just a third of that lost income. There are also deep problems caused by a backlog of work capability assessments. For some claimants, the new-style employment and support allowance is expiring as it has taken more than a year to secure an assessment. Others on universal credit face long delays in getting their correct entitlement. What is being done to clear the backlog and ensure that people with disabilities get the benefits they deserve?

I assure the hon. Gentleman that we are working flat out to ensure that people get their entitlement as speedily as possible, which is certainly the case for the vast majority of people. We saw during the pandemic that universal credit was particularly agile in responding to a huge number of people—hundreds of thousands—who needed support.

We have a record 1.1 million vacancies, and we are cutting the taper rate and raising the income threshold; how many families in North West Durham and throughout the country will benefit?

We are going to see many people—

Hundreds.

More than hundreds—millions of people are going to benefit, because not only will they see the financial benefit but, as they start to get involved with their work coaches and understand what is available to them through the plan for jobs and in-work progression, they will see massive improvements in their financial situation and gain confidence in the workplace.