Universal Credit - Supporting Low Income Families
The Government’s approach throughout the pandemic and the rise in energy bills following Putin's barbaric invasion of Ukraine has been to support all families –particularly those on low incomes – through a range of measures including the furlough scheme, the Energy Price Guarantee where the Government paid on average half of people's energy bills and over £100 billion in cost-of-living support. In 2024/2025 we will spend £138 billion on working age and children welfare, £89 billion on benefits to support disabled people and people with health conditions and £35.3 billion on housing benefits.
This Government is extending support for the lowest paid and most vulnerable. Universal Credit and other disability-related benefits rose by a further 6.7% in April 2024 and the Local Housing Allowance for housing benefits rates have risen to the 30th percentile of local rents for 2024/25 benefitting 1.6 million households by £785 on average. The Government also issued a series of Cost of Living Payments throughout 2022 and 2023 worth £13 billion to 8 million households on the lowest incomes to help with rising costs. The total support package was one of the largest in Europe, which has prevented 1.3 million people from falling into absolute poverty.
As part of the Government's record expansion of free childcare, parents on Universal Credit with one child under 17 are now able to claim up to £1,015 a month, with parents of two children or more eligible for up to £1,739 to help pay for childcare costs. The Holiday Activities and Food programme provides healthy meals, enriching activities and free childcare places to children from low-income families, benefiting their health, wellbeing and learning and since 2022 has provided 10.7 million days to children and young people in this country.
As well as this support, the £2.5bn Back to Work plan will help over a million long-term unemployed, sick and disabled people break down barriers to work, with the Chance to Work Guarantee freeing up claimants to try work with no fear of losing their benefits. The National Living Wage has also risen by 9.8% to £11.44 per hour, meeting the Government's manifesto commitment to raise this to two-thirds of median pay.
Universal Credit Reform
Under Labour the welfare system was broken, 1.4 million people spent years trapped on out-of-work benefits–with many receiving more than the average wage.50,000 households were allowed to claim benefits worth over £500 a week or over £26,000 a year–higher than the average wage at the time. Under Labour the welfare system punished work–people could lose over £9 of every £10 extra they earned. The benefit system was so complicated that for some people, there was virtually no financial incentive towork.
Universal Credit was the biggest and most fundamental reform to the welfare state since its creation. It is a modern benefit based on the sound principles that work should always pay and those who need support receive it. Universal Credit is paid on a monthly basis to align with the way in which the vast majority of employees are paid, and with how service providers and utility companies collect payments. A package of support including budgeting advice and Alternative Payment Arrangements exists for claimants.
Universal Credit Helpline
According to the Universal Credit Service Claimant Survey, 98 per cent of claims are made online and over half did not need help from others. All Jobcentres across the UK have free Wi-Fi and there are computers available to support customers with making their claim online. I am glad that for people who are still unable to access or use digital services, or are not able to travel, assistance to make and maintain their claim is available via the Freephone Universal Credit helpline. If a vulnerable claimant requires, a home visit can be arranged to support someone in making and maintaining their claim.
Help to Claim
Help to Claim continues supporting our claimants. Help to Claim provides free, confidential and impartial support to help people make a UC claim. People using the service can get advice on anything to do with applying for the benefit, including gathering the required evidence, filling in the application or preparing for their first jobcentre appointment. People can also access support online, over the phone and face-to-face through local Citizens Advice bureaus