Loads of people turned to Universal Credit over the last two years. With the loss of jobs and worsening financial situations, more people than perhaps ever before became eligible for these benefits. Four weeks into a new year, 2022 is showing itself to be a contender on previous years. The rising cost of living is going to make every penny even more important. Now, when people are struggling, there is an idea to end Universal Credit altogether. Let’s look at what this proposal would actually mean.
It Might Not Happen
Firstly, this might not happen. If you are reading this and reliant on benefits you might be worrying. This is simply a proposal to end Universal Credit, currently at the idea stage. The proposal is to terminate UC and swap in an idea that everyone will received at least £163 a week instead. This would give everyone in Britain the same minimum amount. This would drastically increase what people get. This April, the minimum Universal Credit rate will be around £75 a week for those over the age of 25. There will be top ups going to those with children, disabilities and housing requirements.
Who Is It For?
Following this idea to end Universal Credit would come this, sort of, Universal Basic Income. £163.50 a week for all adults, including multiple adults who live in the same house. It would target those who are earning less than £512 a month and those who don’t earn anything at all. Recipients wouldn’t even have to prove that they are looking for work in order to get this Basic Income. The proposal has been drawn up by an organisation that looks at radical reform of the current benefits system. This group is funded by Trust for London, an inequality campaign group.
Social Security For All
The idea sets out that anyone working and earning more than £512 a month would lose 45p from their social security, for every £1 they earn in wages. Child benefit would be at a standard rate of £50 a week, which is more than double what people get now. PIP (Personal Independence Payment) for disabled people would range from £83.70 to £230.77.
What do you think of this potential idea to end Universal Credit? What would it mean to your finances if it was put in place? In a week where the Government are finding new ways to take money off the normal people in society (student loans changing so more will be paid back & work from home tax relief being scrapped) I wouldn’t be surprised if it is taken away without anything new bring put in place.
