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Chancellor of the Exchequer Rishi Sunak is asked to extend the one-year increase to the standard universal credit allowance. In 2020, the number of people who used the service in 2020 increased sharply.
Status: 8. October 2020, 5. 7 million people had universal credit, according to figures from the Ministry of Labor and Pensions (DWP).
Since the 12. March to 8. October this year, 3. 7 million people have applied for universal loans – more than a third of 10. 6 million benefit entitlements since introduction in April 2013.
READ MORE: Universal Credit applicants can potentially get £ 140 off their energy bills this winter
This month, Iain Porter, Policy & Partnerships Manager at the Joseph Rowntree Foundation said, “The £ 20 weekly universal loan increase has been an important financial lifeline for families and an economic stimulus in these turbulent times. With more livelihoods appearing uncertain, a strong social security system is essential to prevent rising unemployment that leads to an increase in poverty.
« The government recognized that support prior to the pandemic was inadequate. However, this lifeline has been withheld from those who have used old services – mainly sick or disabled people and carers. There is no doubt that ministers are faced with many challenging decisions, but this is easy. It would be against what we stand for as a society to continue to withhold this support from many people at greatest risk of poverty.
« Later this month is the obvious moment for the government to do the right thing by making the £ 20 weekly universal loan increase permanent and extending it to those excluded from legacy benefits. It is our job not to lose focus now if we are to protect the standard of living. ”
In the weeks leading up to the UK lockdown to slow the spread of COVID-19, Sunak announced an increase in universal credit.
On 20. March the Chancellor said he would increase the universal credit standard allowance for a year by 1. Increase £ 000 per year.
In addition, the basic element of the labor tax credit would be increased by the same amount for the same period.
This costs an additional £ 83 per month – or just under £ 20 per week.
Mr. Sunak said: « To strengthen the safety net, I am increasing the universal credit standard allowance by 1 today for the next 12 months. £ 000 per year.
« Over the next twelve months, I’ll also add the same amount to the base tax credit. «
Mr Sunak said, « I am today announcing nearly £ 1 billion in support for renters by increasing the generosity of Housing Allowance and Universal Loan so that local Housing Allowance covers at least 30 percent of market rents in your area. «
The universal loan consists of a standard monthly allowance as well as additional amounts available to applicants.
Meanwhile, the standard monthly allowance is £ 488. 59 for both people in a couple if both are under 25.
Those who are in a couple where one person is 25 years or older can receive £ 594. 04 (for both).
A person can receive additional amounts that apply to them as well as the standard allowance.
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Universal Credit, Rishi Sunak, Spend Review
LevelMagazine – UK – Universal Credit UK: Rishi Sunak urged to extend spending £ 20 per week increase