You are here: Home - Household Bills - News -

Budget 2021: Universal Credit £20 uplift extended

Written by: Emma Lunn
In a widely predicted move, chancellor Rishi Sunak has extended the extra £20 a week on Universal Credit payments for a further six months.

When the coronavirus pandemic first hit, the government increased Universal Credit payments by £20 each week. But this uplift was due to end in April.

The extension of the uplift was leaked last month to ITV’s political editor Robert Peston – so it’s not a big Budget surprise.

In addition, working tax credit claimants will get equivalent support for a further six months. Due to the nature of working tax credit these claimants won’t get a weekly payment but will instead get a one-off payment of £500.

But poverty campaigners say Sunak hasn’t gone far enough. The Joseph Rowntree Foundation tweeted: “It’s unacceptable that Rishi Sunak has decided to cut #UniversalCredit incomes by £20 a week in six months’ time. This means support will be whipped away at the same time as furlough ends and will lead to hundreds of thousands more people being pulled into poverty.”

Numerous groups have been calling for the £20 uplift to remain in place.

The Work and Pensions Committee said last month that hundreds of thousands of households risk falling into poverty if the benefit was cut in April as planned.

And earlier in February, the Trussell Trust reported that nearly a quarter of a million parents feared not being able to feed their children properly if the £20 uplift was removed.

January saw MPs take place in a non-binding vote on maintaining the Universal Credit uplift. There were 278 votes in favour of the motion, with no votes against, with most Conservative MPs abstaining.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Unfamiliar banks woo savers with top rates…is your money safe?

If you’ve been keeping an eye on the savings best buy tables, you’ll have noticed some unfamiliar names lu...

What the base rate rise means for you

The Bank of England has raised the base rate by 0.25% to 0.5% – following on from the increase from 0.1% to ...

How to get help with your energy bills

The rise in the energy price cap from April will mean millions of households will pay hundreds of pounds a yea...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week