PARLIAMENTARY WRITTEN QUESTION
Universal Credit (27 October 2021)

To ask the Secretary of State for Work and Pensions, pursuant to the Answer of 19 July 2021 to Question 32383 on universal credit, whether a gender impact assessment was subsequently made on the removal of the uplift to the standard allowance of universal credit.

Asked by:
Jonathan Reynolds (Labour)

The Department has not completed an impact assessment of the removal of the Universal Credit temporary uplift as it was introduced as a temporary measure.

The Chancellor announced a temporary six-month extension to the £20 per week uplift at the Budget on 3 March to support households affected by the economic shock of Covid-19. Universal Credit has provided a vital safety net for six million people during the pandemic, and the temporary uplift was part of a COVID support package worth a total of £407 billion in 2020-21 and 2021-22.

There have been significant positive developments in the public health situation since the uplift was first introduced. With the success of the vaccine rollout and record job vacancies, it is right that our focus is on helping people back into work. This approach is based on clear evidence about the importance of employment, particularly where it is full-time, in substantially reducing the risks of poverty.

Through our Plan for Jobs, we are targeting tailored support schemes of people of all ages to help them prepare for, get into and progress in work. These include: Kickstart, delivering tens of thousands of six-month work placements for Universal Credit claimants aged 16-24 at risk of unemployment; we have also recruited an additional 13,500 work coaches to provide more intensive support to find a job; and introduced Restart which provides 12 months’ intensive employment support to Universal Credit claimants who are unemployed for a year. Our Plan for Jobs interventions will support more than two million people

This Government is wholly committed to supporting those on low incomes, and continues to do so through many measures, including by spending over £111 billion on welfare support for people of working age in 2021/22. This government is continuing to take action to support living standards by increasing the National Living Wage to £9.50 effective from April 1st 2022, as well as reducing the taper rate in Universal Credit from 63% to 55% and increasing the value of work allowances by £500 per year, meaning Universal Credit claimants will be able to keep more of their benefit payments when they increase their earnings.

We recognise that some people may require extra support over the winter as we enter the final stages of recovery, which is why vulnerable households across the country will now be able to access a new £500 million support fund to help them with essentials. The Household Support Fund will provide £421 million to help vulnerable people in England. The Barnett Formula will apply in the usual way, with the devolved administrations receiving almost £80 million (£41m for the Scottish Government, £25m for the Welsh Government and £14m for the NI Executive), for a total of £500 million.

Answered by:
David Rutley (Conservative)
2 November 2021