Express & Star

One third of West Midlands households hit by Universal Credit cut

Government plans to scrap an increase in Universal Credit will hit more than one third of households in the West Midlands, according to new figures.

Published
Ministers have confirmed the increase in Universal Credit payments will end in the autumn

The £20 boost, which was brought in to help families during the pandemic, is due to end in September after ministers vowed to focus on getting people off welfare and "into jobs".

Labour MP Pat McFadden is leading calls for a U-turn, saying the cut will "hit the poorest hardest" and goes against the Government's pledge to "level up" the country.

It comes as new analysis by the Resolution Foundation said the West Midlands would be the third worst hit part of the country by the cut, with 34 per cent of households set to lose out.

Speaking in the Commons, Wolverhampton South East MP Mr McFadden, the Shadow City Minister, said: "How can the Government talk about levelling up when they are about to proceed with a cut income that will hit the poorest hardest and will hit the North and the Midlands hardest?

"Equality is not just about a few new buildings. It’s about incomes and opportunities too. It’s not just about bricks and mortar. It’s about families who are struggling to pay the bills."

Wolverhampton South East MP Pat McFadden

Mr McFadden said that although Government interventions such as the furlough scheme and business grants "had made made a big difference", some people had suffered increases in debt and a big strain on household budgets.

He added: "So it would be grossly complacent for the Government to look just at the overall figures and the averages here.

"The Government must get underneath these figures and consider the impact on those who have the lowest incomes and in particular, should reconsider the planned cut of £20 a week they plan to make for the six million poorest households in the country in just a few months time."

Six former Conservative Work and Pensions secretaries, including Sir Iain Duncan Smith, have joined calls to keep the uplift.

In a letter to Chancellor Rishi Sunak they said: "A failure to act would mean not grasping this opportunity to invest in a future with more work and less poverty and would damage living standards, health and opportunities for some of the families that need our support most as we emerge from the pandemic."

Work and Pensions Secretary Therese Coffey said: “A collective decision was made that as we see the economy open up, we shift the focus strongly on to getting people into work and jobs.”