Families on Universal Credit face £290 hit to income if benefits uprated with earnings
EMBARGO: For Immediate Release
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Commons Library analysis shows family on Universal Credit would see a £290 hit to income if Government only uprates benefits in line with earnings
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Lib Dem Work and Pensions Spokesperson Wendy Chamberlain accuses the Government of being “heartless” and says Liz Truss must act in next 24 hours
A couple on Universal Credit would face a £290 real-terms cut to their income if the government only uprates benefits in line with earnings instead of inflation, new analysis has revealed.
The research from the House of Commons Library, commissioned by the Liberal Democrats, uses the latest ONS figures showing regular pay rose by 5.4%, compared to expected inflation of 10%.
A household with two Universal Credit claimants aged over 25 would see their support slashed by £290 in real terms next year if benefits were only raised in line with earnings rather than inflation. A single person on Universal Credit would lose £185 a year while single adults would lose £146.
The Liberal Democrats are calling on the Government to commit to uprating benefits in line with inflation in the next 24 hours to avoid sleepless nights for the most vulnerable in Britain.
Liberal Democrat Work and Pensions Spokesperson Wendy Chamberlain MP said:
“This Government is utterly heartless. Every hour they refuse to give support to some of society’s most vulnerable is an hour in which they lose all decency.
“The Conservatives are acting like Robin Hood in reverse, taking away from struggling families to fund tax cuts for the wealthiest companies.
“Liz Truss must show some leadership and commit to up-rating benefits in line with inflation in the next 24 hours, to prevent sleepless nights for families across the country.”
ENDS
Notes to Editor
Research from the House of Commons Library, commissioned by the Liberal Democrats:
| Monthly | 2023/24 estimated rates | Yearly | 2023/24 estimated rates | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Universal Credit Standard Allowance | 2022/23 rate | 10% uprating | 5.4% uprating | Difference if 5.4% used | 2022/23 rate | 10% uprating | 5.4% uprating | Difference if 5.4% used | |
| Single under 25 | £265.31 | £291.84 | £279.64 | -£12.20 | £3,184 | £3,502 | £3,356 | -£146.45 | |
| Single 25 or over | £334.91 | £368.40 | £353.00 | -£15.41 | £4,019 | £4,421 | £4,236 | -£184.87 | |
| Joint claimants both under 25 | £416.45 | £458.10 | £438.94 | -£19.16 | £4,997 | £5,497 | £5,267 | -£229.88 | |
| Joint claimants, one or both 25 or over | £525.72 | £578.29 | £554.11 | -£24.18 | £6,309 | £6,940 | £6,649 | -£290.20 | |
