UK Credit

UK government’s new subsidy scheme amid squeezing universal credit is a bogus economy

WELCOME to the Westminster headlines – or are they? The government will provide £ 500million in new grants to struggling households, starting this month! This month, the same government is removing leave support and removing the £ 20 / week increase in universal credit. So it may be new grants, but is it new money or are they just shifting the targets?

I would suggest that this shifts the targets, as this time the “new grants” will be means tested, creating more administrative costs, creating stress for the applicant, who will have to go to their local authorities (local authorities who the container for refusal of grant to the applicant). As is always the case, some claimants will simply fall through the cracks or be left out altogether. So are the “new subsidies” a bogus economy? Would it have made more economic sense to continue the £ 20 / week increase in universal credit? I think so.

Much like the ‘new grants’, the £ 20 / week increase in UC was intended for struggling families, millions of them, struggling to cope with rising energy costs as they approached. winter and rising food costs due to Brexit. Even before winter, increased demand in food banks was reported. This “new subsidy” from the Conservatives for families in difficulty is not quite assumed, and the vulnerable will pay the price once again!

Catriona c clark


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