Published On: Thu, Oct 8th, 2020

Universal Credit cuts: Could your Universal Credit payment be cut next year? | Personal Finance | Finance

Millions of Britons claim Universal Credit, and with the ongoing pandemic this service has been more needed than ever. Universal Credit is the amalgamation of several separate benefits, including Job Seekers Allowance, Child Benefit and Disability Allowance.

The crossover to Universal Credit has long been plagued by criticism, with some facing reduced money and long wait times when first added to the system.

However in recent months the system has helped thousands who have faced redundancy, reduced hours and reduced income during the coronavirus pandemic.

In fact the system was given a boost in April to help those struggling during lockdown.

In April Chancellor Rishi Sunak laid out a number of temporary measures as part of his Budget.

Read More: Martin Lewis breaks down Universal Credit rules 

Despite continued job uncertainty, Prime Minister Boris Johnson has ignored calls to stop a planned £1,000-a-year cut to Universal Credit planned for April 2021.

During the coronavirus pandemic, the welfare scheme has been given a boost of £1,040 a year.

This equals an extra £80 to £90 a month on top of claimants usual payments.

Some campaigners have been urging the Government to make this increase permanent.

Mr Johnson said: “I am proud that we have been able to uprate it in the way that we have, and we will continue to support people across the country, with the biggest cash increase in the national living wage this year.

“The result of Universal Credit so far has been that there are 200,000 fewer people in absolute poverty now than there were in 2010.

“It is vital that we tackle poverty in this country.

“That is why this Government are so proud of what we did with the national living wage.

“We are putting another £1.7 billion into Universal Credit by 2023-24.

“If that does not give him the answer he wants, he can ask again next week.

“We will continue to support people and families across this country, and we will continue to spend £95 billion a year in this country on working-age welfare.

“But the best thing we can do for people on Universal Credit is to get this virus down, get our economy moving again and get them back into well-paid, high-skilled jobs – and that is what we are going to do.”

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