Chancellor: Rishi Sunak and Universal Credit.
Millions will be worse off under the changes to Universal Credit. These will be the lower-income fraternity, not only because of the ending of the £20.00 uplift but because of the new taper rate in UC, (Universal Credit). The changing of the taper rate in Universal Credit was done to offset the loss of the £20.00 uplift. Only those high earners on UC will be better off under the new taper rate. For those, not in work and on UC, also, those in receipt of UC and in low paid work, will be no better off. In fact, it is thought such people, will be a £1,000.00 down. Obviously, this will have a dramatic affect on the things they can afford and cannot.
According to the Resolution Foundation, 3.6 million families will be worse under the changes made to UC, by Sunak, in his budget. Those high earners, spoken about earlier working and in receipt of UC, amount to 1.3 million. So, with the ending of the £20.00 uplift and the new taper rate in UC, there will be, as always, winners and losers.
This government from the time they got into power to Boris' administration today, have let ordinary people down, again and again. First off we had the awful cutbacks on services that some of the poorest in our community needed. We had the rolling-out of Universal Credit, which in theory and on paper, seemed sound. Rolling different benefit allowances into one. However, the reality for many, proved anything but helpful. Such as having to wait 5 weeks for their first monthly payment, while their bills, rent, mortagage payments, etc, mounted up and up. Boris won his landslide election in 2019 promising voters in the Midlands and the North, he would level up their areas. Levelling up seems just another empty, throw-away statement from Boris. Yes, the minimum wage has gone up to £9.50, the government is giving local authorities wads of cash, to spend on the most deprived areas. So while all of this appears to be good news, there will still be many who will not benefit from this. We've also had COVID that the government response to this plague, which at first proved woefully inadequate. Thousands have needlessly died and suffered, while the government dithered. Finally, with the vaccine, the government got its act together. We have had the shenanigans of Brexit and while it is done, Northern Ireland remains a problem for both Boris and the EU. This nation during 11 years of this Tory administration has gone through hell and back. The repercussions of what the Conservatives have done to this country will resound for decades.
Karl Handscomb, Headman at the Resolution Foundation welcomed many aspects of the changes to Sunak's Budget, with regard to UC. However, he highlighted the concerns he had, for those, who will not benefit from it.
Of course, you expect the opposition parties like Labour, Lib-Dems, SNP, Greens, etc, to oppose many aspects of the budget, (especially changes to UC). However, there are many Conservative MPs, with an eye to being re-elected in 2024, who disagree with Sunak's tampering with UC.
Shadow Chancellor, Rachel Reeves, was handed a golden opportunity to reply to Sunak's Budget announcement. With Sir Keir isolating and Ed Miliband sitting in for the Labour leader, (during Prime Minister's Questions), Rachel Reeves, tore into the Chancellor's budget. Saying the only people, who would benefit from Sunak's budget, would be Champagne sipping bankers on private jets or in first class, on commercial flights.
So the changes to UC will remain as long as the Tories remain in power. Whether you happen to be a lower earner on UC, a high earner on UC or just unemployed on UC, people will have to live with it. Meanwhile, those operating food banks and other charities helping the less well off will be there to help those in need.
Will Labour end Universal Credit or alter it? Certainly, Jeremy Corbyn had the intention of ending this hated benefit but he never got the chance. What any Keir Starmer administration will do, will remain to be seen, when and if they gain power.