Source · Select Committees · Scottish Affairs Committee
Recommendation 103
103
The Scottish Government in their evidence to us highlighted that they had a ‘number of...
Conclusion
The Scottish Government in their evidence to us highlighted that they had a ‘number of concerns around the adequacy of the payment [on Universal Credit] even before coronavirus.’259 The Cabinet Secretary for Social Security and Older People also said that the Scottish Government’s view on whether the £20 uplift should be made permanent and extended to legacy benefits was that it ‘absolutely should remain a permanent fixture and indeed extended to legacy benefits.’260 Additionally, in Scottish Government’s written evidence they ‘noted new research which estimates that removing the £20 uplift and reinstating the Minimum Income Floor261 in April 2021 would reduce spending on Universal Credit and Tax Credits in Scotland by nearly half a billion pounds in 2021/22, pushing 60,000 people, including 20,000 children, into relative poverty.’262 In written evidence, the Scottish Government Cabinet Secretary for Social Security and Older People, highlighted that she had ‘continually engaged with the UK Government in order to raise issues with the reserved elements of social security’263 and that part of that work included writing to the Secretary of State for Work and Pensions along with her Welsh 251 Q64 252 Q84 253 Q109 254 Q110 255 Work and Pensions Committee, First Report of Session 2019–21, DWP’s response to the coronavirus, HC 178, Para 62 256 Department for Work and Pensions, ‘Covid 19 SSAC letter to the Secretary of State’, accessed 26 April 2021 257 Department for Work and Pensions, ‘Covid 19 SSAC letter to the Secretary of State’, accessed 26 April 2021 258 House of Lords, Universal Credit isn’t working: proposals for reform, Second Report of the Select Committee on Economics Affairs, Session 2019–21, HL 105, Para 129 259 Q139 260 Q139 261 An assumed level of earnings that the DWP uses to calculate benefit payments for self-employed people who are unable to work and are claiming Universal Credit as a result. 262 Scottish Government (WPS0013) 263 Scottish Government (W
Government Response
Not Addressed
HM Government
Not Addressed
Universal Credit has provided a vital safety net for six million people during the pandemic, and the UK Government announced the temporary uplift as part of a £400 billion package of measures put in place that will last well beyond the end of the roadmap. The UK Government focused support on Universal Credit and Working Tax Credit claimants because they were more likely to be affected by the sudden economic shock of Covid-19 than legacy benefit recipients. There was never any plan to extend the uplift to legacy benefits. As the economy recovers, the UK Government’s ambition is to help people move into and progress in work as quickly as possible based on clear evidence around the importance of employment, particularly where it is full-time, in substantially reducing the risks of poverty. The UK Government’s ambitious Plan for Jobs is already delivering for people of all ages right across Great Britain and includes new schemes such as the £2 billion Kickstart Scheme.