Government risks causing ‘immense, immediate and avoidable hardship’ if it goes ahead with planned £20-a-week cut to universal credit and working tax credit

Urging Prime Minister to 'make the right decision', open letter from 100 organisations says government's response will reveal the true depth of its commitment to improving the lives of families on lowest incomes

The government risks causing 'immense, immediate and avoidable hardship' if it goes ahead with its planned £20-a-week cut to universal credit and working tax credit, a group of 100 organisations from across the UK has warned.

In an open letter to the Prime Minister Boris Johnson, the group - which includes charities, doctors, public health experts and think tanks - highlights that, after the last economic crisis, the erosion of social security support was one of the main drivers of the rise in in-work and child poverty, and contributed to a soaring need for food banks, rising debt and worsening health inequalities.

Urging Mr Johnson not to repeat those mistakes, the letter says - 

'This is not a question of having to choose between a recovery based on getting people into jobs or investing in social security, in fact most families impacted by this cut to universal credit and working tax credit are already in work. The reality of the UK labour market means that to improve living standards, we need to both improve job quality and strengthen the social security system. We also must never lose sight of the need to provide adequate support to families who are not able to work so they can meet their needs with dignity.'

In addition, alongside expressing 'deep regret' that the DWP has not published an impact assessment of the effect of its plan to cut the extra £20 - which was introduced to 'strengthen the safety net' at the start of the pandemic - the letter points to independent analysis from the Joseph Rowntree Foundation that shows it risks plunging 500,000 people into poverty, including 200,000 children, and that it will take the main rate of out of work support down to its lowest levels in real terms since around 1990.

Finally, warning that going ahead with the cut would fundamentally undermine the government's mission to level up, the organisations conclude - 

'We are rapidly approaching a national crossroads which will reveal the true depth of the government’s commitment to improving the lives of families on the lowest incomes.

We all want a social security system that supports families to escape poverty rather than pulling them deeper into it. However, this cut risks causing immense, immediate, and avoidable hardship. A strong social security system is a crucial first step to building back better. We strongly urge you to make the right decision.'

For more information, see Keep the lifeline - open letter to the Prime Minister from jrf.org.uk