LIFE

Universal Credit payments could rise to £120 per week under new plan

Last modified on Tuesday 7 March 2023

Two national charities are calling on the government for the increases, to ensure families don't need to rely foodbanks

Proposals to increase Universal Credit payments to £120 per week have been put forward in a new plan.

Charities the Joseph Rowntree Foundation and the Trussell Trust are calling for an 'Essentials Guarantee' from the government, after it was revealed more people are using foodbanks because of 'inadequate social security levels'.

According to the national charities, nearly 1.3m food parcels were distributed between April 2022 to September 2022, and 90% of low-income homes receiving Universal Credit regularly cannot afford essentials, including a warm home, food, or toiletries.

The news comes as families continue to be hit hard by rising living costs – and we've got loads of helpful advice in our cost of living hub here.

'Essentials Guarantee'

The 'Essentials Guarantee' would mean those receiving the Department for Work and Pensions (DWP) benefit would be able to access vital household goods, food and utilities.

This would mean payments would rise to £120 a week for a single claimant, while couples would receive £200.

'UC should protect households'

Joseph Rowntree Foundation and the Trussell Trust are calling for the government to bring in the new guarantee, that they claim will ensure households can receive essential items.

The charities said this change would embed 'the widely supported principle that, at a minimum, Universal Credit should protect people from going without essentials such as food, utilities and vital household goods.'

Furthermore, the two charities said if the 'Essentials Guarantee' was brought out before full rollout of Universal Credit, then it should be applied to legacy benefits, including Employment and Support Allowance.

Assuming a full rollout of Universal Credit, the estimated cost of bringing in the 'Essentials Guarantee' would be about an extra £22bn per year.

Despite this, campaigners argue huge savings would be made to public services due to improved outcomes.

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