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1 September, 2021 Open access

Work and Pensions Secretary rejects call from chairs of cross-party committees in all four UK Parliaments to extend universal credit and tax credit ‘uplift’ beyond September 2021

'Dismissive response' suggests that government is still in denial about impact of cut, says UK Work and Pensions Committee Chair

Work and Pensions Secretary Thérèse Coffey has rejected a call from the chairs of cross-party committees in all four UK Parliaments to extend the Covid-19-related universal credit and tax credit 'uplift' beyond September 2021.

Responding to a letter dated 20 July 2021 from the chairs of the Scottish Parliament's Social Security and Social Justice Committee, the UK Parliament's Work and Pensions Committee, the NI Assembly's Communities Committee, and the Senedd's Equality and Social Justice Committee, Dr Coffey confirms that the increase will end as planned from October 2021, adding that -

'Now the economy has reopened it is right that the government should focus on supporting people back into work and supporting those already employed to progress in their careers. Our ambition is to support two million people move into and progress in work through our comprehensive £33 billion Plan for Jobs.'

In response, UK Work and Pensions Committee Chair Stephen Timms said today -

'The £20 cut will plunge hundreds of thousands, including children, into poverty. Instead, the government should extend the lifeline beyond September. The Secretary of State’s dismissive response to our letter suggests that the government is still in denial about the impact of ending the increase.

The government’s new employment support schemes are welcome, but 40 per cent of universal credit claimants are already in work. The cut will hit many working families hard. Benefit rates have not kept up with the rising cost of living, and the government’s plan means that, in real terms, they will fall to their lowest level in over 30 years. The government must change course to prevent severe hardship for many thousands of families.'

For more information, see Thousands face ‘severe hardship’ as Minister rejects UK-wide call to keep universal credit uplift from parliament.uk