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Universal credit: Government stop £20-a-week increase

woman looking at billsImage source, Getty Images

The government is stopping the £20-a-week increase to universal credit, which was introduced to help people on low incomes during the pandemic.

The government say the withdrawal of the £20 will save money and aim to encourage people to get back into work.

But many MPs want the universal credit boost - which the government say was always intended to be a temporary increase - to stay in place because it will leave many families struggling to afford things.

But what is universal credit? And how will this money being taken away affect families? Find out below.

What is universal credit?

Universal credit is a payment given by the government if people are on a low income or don't have a job.

The money is used to help with living costs such as bills, food or childcare.

Why is it being taken away?

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Image caption,

The government are stopping the £20-a-week increase to universal credit

The increase of £20-a-week was introduced to help people because of the pandemic. But this scheme will end on 6 October.

The government say that the £20 increase was always going to be temporary.

The government say getting people back into work is the best way to tackle poverty and they want less people to rely on universal credit for money.

Also after the pandemic, the country is struggling with money and debt, so stopping this boost of cash will save the government money.

How will this affect families?

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Universal credit is used by more than 5.8 million people in England, Scotland and Wales.

Charity Citizens Advice has warned that a third of people on universal credit will end up in debt when this extra payment comes to an end.

Gas prices are also due to rise, which could leave families with less money and struggling to heat their homes as winter approaches.

Food banks, which are places where basic food items are available for free to help people struggling to afford to buy food, said they are "bracing themselves" for more people to need their help because the universal credit increase is being removed.

So not having this extra money could make it difficult for some people to pay for bills, food and childcare.

What does the government say?

The government has said that the increase was always going to be temporary.

The boost was introduced to help during the pandemic when many people were put on furlough or lost their jobs.

However not all Conservative MPs agree with the cuts and some believe it should stay in place.