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31 August, 2021 Open access

Devolved governments call on Work and Pensions Secretary not to end universal credit and tax credit £20 uplift and instead make it permanent

Letter expressing concern at the biggest overnight reduction to a basic rate of social security since the modern welfare state began also asks for suspension of minimum income floor to be extended for a further 12 months

The devolved governments of Scotland, Wales and Northern Ireland have called on the Secretary of State for Work and Pensions Dr Thérèse Coffey not to end the universal credit and tax credit £20 uplift, but to instead make it permanent.

In a joint letter to Dr Coffey, the Scottish Social Justice Secretary and corresponding Ministers in Wales and Northern Ireland express their concern at the 'biggest overnight reduction to a basic rate of social security since the modern welfare state began' arguing that it will increase hardship and poverty for people that are already struggling.

Questioning the DWP's stated justification - to encourage people into work - for its policy to end the £20 per week increase to universal credit and working tax credit that was introduced at the start of the pandemic, the letter points out that - 

'... the statistics from your Department show that of the 6 million people on universal credit, 2.2 million are already working and 1.6 million are not required to work due to health and caring responsibilities that prevent them from seeking employment. We query, therefore, how failing to maintain the uplift to universal credit for households in these situations encourages people into work, and are concerned about the need to ensure that it provides them with adequate financial support that takes into account their personal circumstances.'

In addition, highlighting that a number of groups have voiced similar concerns about the impact of removing the uplift on poverty and the financial health and well-being of people - including the Children’s Commissioners for the devolved nations, the Joseph Rowntree Foundation, Citizens Advice and the Work and Pensions Committee - the letter requests that the Department shares any data and impact assessments behind its decision to withdraw the support and explains how it intends to support families who are pushed into poverty as a result of its decision. 

NB - while the DWP previously responded to a Freedom of Information request saying it was 'not in the public interest' to release analysis that it had undertaken on the impact of removing the £20 uplift, the Minister for Welfare Delivery Will Quince subsequently said that 'no such assessment' had been made.

In closing, the devolved nations urge the Secretary of State to -

'... reverse the decision to end the £20-per-week uplift to universal credit and working tax credits, agree to make them permanent and to extend the suspension of the minimum income floor for a further twelve months.'

For more information, see Universal Credit uplift: joint letter to UK Government from gov.scot