Universal Credit

Dear constituent,

Thank you for contacting me about foodbanks and the role played by Universal Credit (UC) in driving up foodbank usage. Figures from the Trussell Trust show that nearly half of all households visiting foodbanks have struggled to afford essential goods because they are repaying debt accrued through UC.

In my view, our social security system is not fit for purpose when so many people need to turn to foodbanks and cannot afford essentials. Like you, I am concerned that, at present, the system does not give people the support they need during difficult times.

As I am sure you will know, in the 2021 Spring Budget, delivered on 3 March, the Chancellor announced that Universal Credit (UC) would be reduced by £20 a week from the end of September. This reduction has now happened, I regret the Chancellor did not reverse his decision in his Autumn Budget of 27 October.

I agree with you that UC should not have been reduced at this time and I voted to keep UC at the level it was raised to during the COVID-19 pandemic. I believe that the £20-a-week uplift should have remained until such time as it can be replaced with a new social security system. In my view, that new system should provide a proper safety net, have dignity and respect at its heart, and allow low-income earners to keep more of their take-home pay. I also support increasing the minimum wage to £10-a-hour immediately

In the meantime, I want to see urgent reforms to UC and the current social security system. These include an end to the five-week wait for a first UC payment and for UC advances to be converted into grants instead of loans. In addition, I believe the UC savings limit, the benefit cap and the two-child limit for UC and Tax Credits should be abolished.

More widely, I support uprating all six legacy benefits by £20 a week in line with UC. Taking all these steps would provide immediate support to those affected by coronavirus including many people who have kept our country running during the pandemic.

Thank you once again for contacting me about this very important issue.

Yours sincerely,

Peter Dowd MP