By David Hanson MP / Latest News / 0 Comments

Cuts to Universal Credits

I joined the calls for the Government to rethink its planned cuts to Universal Credits. The cuts to Universal Credits will come into force next April, initially affecting the hundreds of thousands of families who have piloted the new Credit.

By 2020, the Institute for Fiscal Studies says 2.6 million working families on Universal Credit will be £1,600 a year worse off due to the cuts.

There were two major cuts to in-work support in the Summer Budget – one for tax credits and one for its replacement, Universal Credit. Only the tax credit element has been reversed.

In Delyn there are currently 300 people receiving Universal Credit. This is estimated to increase year on year to 6,000 households. That means that by April 2016 Delyn families will lose £480,000, growing to £9,600,000 by 2020-21. This will be money taken out of the pockets of working families and of our local economy.

Labour is calling for full protection for current and future claimants of Universal Credit and for the full reversal of cuts to the work allowance of Universal Credits.

Labour worked hard to successfully overturn the cuts to working tax credits and now we must stop the cuts to Universal Credits. A loss of nearly £10 million to our local economy will be devastating for families and businesses.

As more and more people in Delyn move onto Universal Credits the seriousness of these cuts will continue to grow. That is why the Government must reverse their position, as they did on working tax credits, to ensure that working families do not struggle to make ends meet.

Once again the UK Government is forgetting the working families of Wales. These cuts must be reversed.