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Government urged to increase Universal Credit payments in response to coronavirus

The government is under pressure to make emergency changes to Universal Credit amid fears that the coronavirus outbreak will result in financial hardship for those who rely on the benefit.

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A briefing note published today by the Resolution Foundation thinktank said that as a result of the coronavirus outbreak “low earners are likely to be hit most swiftly, in stark contrast to the 2008 financial crisis”.

In response to the growing crisis, the thinktank urged government to strengthen the social safety net by increasing the main adult out-of-work support in Universal Credit and other benefits by one-third to £100 per week. It estimated this would cost £10bn a year.

The latest government statistics show that as of 9 January 2020 there are 2.8 million people receiving Universal Credit.

The thinktank said that less than one in 10 of those in the bottom half of earners say they can’t work from home, making it difficult for them to maintain incomes while adhering to government’s advice on social distancing.

Resolution Foundation’s analysis follows calls from Kate Henderson, chief executive of the National Housing Federation, to “strengthen the welfare system to ensure that everyone who needs it can quickly get help if their income drops”.


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Sara Wilcocks, head of communications at Turn2Us, said: “We urge the government to eliminate the five-week wait for Universal Credit, increase the value of benefits across the board, and change eviction rules.”

Helen Barnard, deputy director of policy and partnerships at the Joseph Rowntree Foundation, also urged the government to make emergency allowances around the benefit.

“She said the government should temporarily remove the ‘Minimum Income Floor’ rule in Universal Credit, which reduces the amount of help available for self-employed people, and put in place a mechanism to give people immediate support while they apply for the benefit.”

“It is vital to quickly bring forward much greater help for people who are restricted by low incomes and at high risk of being pulled into even greater hardship by the effects of COVID-19, and by wider economic impacts,” she said.

The Child Poverty Action Group also called for a “temporary uplift” in the Universal Credit standard allowance, employment support allowance and income support to help the people who have to self-isolate.

The government announced yesterday that there will be a “complete ban” on evictions in both social and private rented housing during the coronavirus crisis. But London mayor Sadiq Khan has said this measure is merely “kicking the can down the road”.

The Department for Work and Pensions has been contacted for a response.

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