Universal Credit cuts: everything you need to know

Boris Johnson is under pressure today to extend the £20-a-week uplift to benefits which is set to be scrapped in April.

Labour will force a vote on the planned cuts in the Commons today.

Here is everything you need to know…

What is the uplift?

In March, the government increased the standard allowance in Universal Credit and the basic element in Working Tax Credit by £20-a-week for one year.

This meant that one single person aged 25 or over, claiming Universal Credit would get £409.89 a month instead of £317.82.

This is planned to stop in April.

What is happening in the commons today?

Labour leader Sir Keir Starmer has warned Boris Johnson that the planned cut could leave millions of people without an extra £1,000-a-year during the pandemic.

He has urged the Prime Minister to extend the uplift.

The party will use its opposition day debate in the Commons this afternoon to force a vote on the plans.

The motion states: “This house believes that the Government should stop the planned cut in Universal Credit and Working Tax Credit in April and give certainty today to the six million families for whom it is worth an extra £1,000 a year.”

Conservative MPs are expected to abstain.

How many people in Oxfordshire claim Universal Credit?

More than 16,000 people in Oxfordshire were claiming Universal Credit on October 8 (the latest data available).

Here’s a breakdown of how many people could be worse off if the planned cuts go ahead:

• Oxfordshire - 16,740 people (9,740 men and 7,000 women)
• Cherwell – 3,890 people (2,290 mena nd 1,605 women)
• Oxford – 4,700 people (2,885 men and 1,605 women)
• South Oxfordshire – 2,935 people (1,640 men and 1,295 women)
• Vale of White Horse – 2,790 people (1,625 men, 1,160 women)
• West Oxfordshire – 2,425 people (1,305 men and 1,120 women)

Old data shows that on March 12 (before the first lockdown), only 6,690 people were claiming Universal Credit in Oxfordshire.

This is how many people were claiming Universal Credit in March:

• Cherwell: 1,460 (2,430 people less than in October) 
• Oxford: 2,115 (2,585 people less than in October) 
• South Oxfordshire: 1,050 (1,885 people less than in October) 
• Vale of White Horse: 1,095 (1,695 people less than in October) 
• West Oxfordshire: 965 (3,390 people less than in October) 

How will it impact the country?

The debate comes amid a warning from the Resolution Foundation that scrapping the £20 a week uplift will lead to a particularly tough 2021 for people with low incomes across the UK.  

The think tank estimated that the stopping of the extra cash could drive relative poverty from 21 percent to 23 percent by 2024/25, pushing a further 730,000 children into poverty.

Who are our Oxfordshire MPs that can vote today?

In Oxfordshire we have six MPs covering the county. They are:

• Anneliese Dodds, Labour, Oxford East
• Layla Moran, Liberal Democrats, Oxford West and Abingdon
• John Howell, Conservative, Henley
• Victoria Prentis, Conservative, Banbury
• David Johnson, Conservative, Wantage
• Robert Courts, Conservative, Witney

What have MPs said about it?

Today I call on all Conservative MPs to do the right thing and vote with Labour to #CancelTheCut to Universal Credit.

After the worst recession of any major economy, the Government should be supporting families through this crisis.

Instead it's hitting them in their pockets.

— Anneliese Dodds 💙 (@AnnelieseDodds) January 18, 2021

Sir Kier has said: “Families across the UK have spent the past year worried for their loved ones, their jobs and their family’s security.

“Millions of people have had to juggle childcare with working from home, have seen jobs or incomes cut or been excluded from self-employment support.

Tomorrow, the Conservatives can do the right thing and vote with Labour to #CancelTheCut to Universal Credit.

Their cut will cost six million families £1,000 a year and push 200,000 children into poverty.

It's the worst possible time to strip support from families who need it.

— Keir Starmer (@Keir_Starmer) January 17, 2021

“If we don’t give a helping hand to families through this pandemic, then we are going to slow our economic recovery as we come out of it.

“We began 2021 with one of the worst death tolls in Europe and the deepest recession of any major economy.

“Without action from Government, millions of families face a £1,000 a year shortfall in the midst of a historic crisis.

“We urge Boris Johnson to change course and give families certainty today that their incomes will be protected.”

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