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Workers in south-west England hardest hit by Universal Credit cut | Universal credit


The south-west of England could have the very best proportion of low-income staff affected by a £20-a-week cut later this yr in common credit funds, based on evaluation by the TUC that illustrates the widespread tradition of low pay from Cornwall to Gloucestershire.

More than 4 in 10 common credit claimants in the south-west have a low-paid job that qualifies them for advantages, a bigger proportion than some other area, stated the commerce union physique.

The price of claimants who had a job in May was 42.1% in the south-west in contrast with 41.2% in the east Midlands, the following worst affected, and 36.7% in the West Midlands.

The TUC normal secretary, Frances O’Grady, stated 2.3 million working households, in addition to those that rely solely on advantages, would see their incomes drop by greater than £1,000 a yr if the federal government presses forward with a deliberate £20-a-week cut in common credit from October.

The report additionally highlights the impression on particular person parliamentary constituencies, revealing that the prime minister’s west London Uxbridge and South Ruislip seat has 9,546 UC claimants of whom 3,665 are in work, 38.4% of the full.

In the chancellor Rishi Sunak’s Yorkshire constituency of Richmond almost half, 48%, of individuals receiving common credit are in work.

The TUC stated: “It shows that even in wealthier parts of the UK the cut to universal credit will impact heavily on low-paid workers.”

About 6 million households declare UC and its predecessor, working households tax credit – twice the determine earlier than the pandemic. More than 500,000 individuals had been compelled to file a declare throughout simply 9 days in March 2020 because the virus started to unfold and the federal government introduced the primary lockdown.

In the identical month, ministers agreed a £20 rise in common credit and tax credit as a one-year measure to assist new claimants modify to the additional prices of the pandemic.

Estimates counsel it helped 700,000 individuals keep above the poverty line through the pandemic. Surveys have proven the general public assist it being made everlasting.

Earlier this month Thérèse Coffey advised MPs the federal government had honoured its dedication to increase the uplift for six months. Now the economic system was opening up, she stated, the main focus of DWP assist “should be strongly on getting people into work and jobs”.

Although there was no up-to-date strong knowledge exhibiting that claimants had been coming off the profit in important numbers, Coffey stated inner DWP figures advised there have been 2.1 million job seekers on common credit, down from 2.5 million in March, and this quantity was lowering week by week.

Labour, welfare charities and a few Tory MPs have criticised the transfer, saying that hundreds of thousands of individuals will nonetheless be in precarious jobs in October and unable to manage financially after a cut in advantages of greater than £1,000 a yr.

In a separate report, additionally timed to coincide with the summer time parliamentary recess, the Joseph Rowntree Foundation stated greater than 500,000 individuals, together with 200,000 kids, will probably be plunged into poverty when the federal government pushes by what it known as “the largest single cut to the basic rate of social security since the second world war”.

About 6 in 10 of all single-parent households will expertise their earnings falling by the equal of £1,040 per yr after the befit cut, it stated, imposing “the biggest overnight cut to the basic rate of social security since the foundation of the modern welfare state”.

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