Universal credit top up being phased out as Covid restrictions end

The government confirm the £20 a week increase to universal credit will be “phased out” in the autumn.

Over 5.5 million households in the UK claim universal credit, a payment from the government to aid with living costs. The benefit for people of working age is a replacement for six separate all merged into one payment. The top up introduced in April last year intended to help deal with the impact of the Covid pandemic on the economy. An extension came in March for a further six months, and Labour now call for it to continue past autumn.

The additional money, worth about £1,000 a year, made a big difference to some families. It really enabled them to get by instead of falling further into poverty, making it a much welcome boost.

Work and Pensions Secretary Therese Coffey says the payment will face an “adjustment”, in a collective decision by the government. The changes will come into effect this autumn, along with other measures implemented to help people affected by the pandemic.

She says that current claimants will receive information before October to ensure they are aware of the coming changes. Communications will warn them the extra help is phasing out, and to expect an adjustment in their payments.

Temporary Covid measures

During the pandemic, the government focused on jobs and doing everything possible to help people stay in work, and keep earning. The £20 increase in credit was only ever a temporary measure, brought in to support people during the crisis. As Covid restrictions all lift, and we return to a more normal life, it’s time to end these measures too.

Many are urging the government to keep the raised payment. Six former work and pensions secretaries even wrote to Chancellor Rishi Sunak to request it not to end. But Ms Coffey says it is a “collective decision” by current ministers to wind the initiative down. The same as it was a joint decision for its introduction.

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