Local Government Finance: Universal Credit

Department for Levelling Up, Housing and Communities written question – answered on 27th September 2021.

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Photo of Owen Thompson Owen Thompson SNP Chief Whip

To ask the Secretary of State for Levelling Up, Housing and Communities, what impact assessment has been undertaken of the potential effect of the end of the £20 universal credit standard allowance uplift on local government budgets throughout the country.

Photo of Kemi Badenoch Kemi Badenoch Minister for Equalities, Minister of State (Housing, Communities and Local Government), Minister of State (Foreign, Commonwealth and Development Office), Minister of State (Foreign, Commonwealth and Development Office) (jointly with Department for Levelling Up, Housing and Communities)

Since the start of the pandemic, the Government’s priority has been to protect lives and people’s livelihoods. This includes continually supporting individuals and businesses.

The Chancellor announced a temporary six-month extension to the £20 per week uplift at the Budget on 3 March to support households affected by the economic shock of Covid-19.

Universal Credit has provided a vital safety net for six million people during the pandemic, and the temporary uplift was part of a Covid support package worth a total of £407 billion in 2020-21 and 2021-22.

There have been significant positive developments in the public health situation since the uplift was first introduced with the success of the vaccine rollout. Now the economy is reopening and as we continue to progress with our recovery our focus is on helping people back into work.

Any extension to the uplift or further Covid support is a matter for HMT.

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