Universal Credit uplift set to be extended while Covid restrictions last and then given to the poorest
THE £20 Universal Credit boost is likely to stay while Covid rules remain — and then be phased out to target the poorest.
The bump expires at the end of March.
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And PM Boris Johnson has stepped into a growing Cabinet rift to demand a middle way to avoid a cliff-edge.
It has been seen as a weekly lifeline to Britain’s poorest families, adding an extra £1,040 a year income.
Chancellor Rishi Sunak does not want to make the £6billion uplift permanent but is under pressure from MPs and Work and Pensions Secretary Thérèse Coffey to change his mind.
He says it will cost the equivalent of a penny on income tax for 30 million Brits, and a 5p rise in fuel duty to fill the black hole in Britain’s battered finances.
A Government source said: “It’s not a binary choice between extending or not. All options remain on the table and ministers are working through them to find the best solution for families and those on lower incomes.”
It is understood Mr Sunak plans to announce at the Budget that the full measure will stay for a long as Covid restrictions are in place, before being phased out to help only the neediest.
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He has considered easing the withdrawal pain with a one-off cash bonus of £500 but his allies reject reports it could rise to £1,000. One Tory MP said: “Why favour welfare claimants rather than soldiers, doctors, police, nurses and teachers? If anyone deserves a pandemic bonus, it is them.”
Today, Ms Coffey said: “It’s fair to say I’m in active discussion with the Chancellor and the PM about how we continue to make sure we support families during this difficult time.”
Jonathan Reynolds, Shadow Secretary of State for Work and Pensions, said: “The Government must now support struggling families and cancel the cut to Universal Credit.”
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