Money Saving Expert Martin Lewis has issued a warning to anybody on Universal Credit in the UK. There are currently around 2.6 million people in the country who are receiving the benefit payment.
He's warned a new system is coming into place which will see millions of people worse off than they are now. This comes just before the cost of living crisis is set to worsen.
"We have a situation where Universal Credit itself hasn't been uprated by the current level of inflation because it was the older level of inflation when it was lower," the money expert said. You're [The government is] actually going to move people onto a new system where they can earn substantially less amid a cost of living crisis, we are again throwing some of the poor in society under the bus [...] do the Government not understand the timing?"
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The Mirror reports more than 2.6million people on legacy benefits will start to be moved over to Universal Credit from this week in an automatic process that was previously halted due to the Covid-19 pandemic. The migration means people on legacy support, such as Jobseeker’s Allowance will be transferred across, with 500 people to receive letters this week – but for many, it could mean a dramatic cut in payments.
More than 20 charities have urged the UK Government to hit pause on the migration as families grapple with soaring inflation. Groups have written to Work and Pensions Secretary Dr Therese Coffey warning that plans to move legacy benefit claimants on to the new system are “too dangerous to continue”.
They say the incomes of more than 700,000 people with mental health problems, learning disabilities and dementia could be put at risk, and that the consequences of having benefits halted could be “devastating and life-threatening”. In a written statement submitted to the House of Commons on April 25, Ms Coffey said she is “absolutely committed to making this a responsible and safe transition”.
The Government's own figures estimate that the move could leave 900,000 people worse off. Some legacy benefits will "run on" for two weeks to help bridge some of that gap during the migration period.
This includes Housing Benefit, Income Support, income-related Employment and Support Allowance and income-based Jobseeker's Allowance. A UK Government spokesperson said: “Over five million people are already supported by Universal Credit.
“It is a dynamic system which adjusts as people’s earnings change, is more generous overall than the old benefits, and simplifies our safety net for those who cannot work. Roughly 1.4 million people on legacy benefits would be better off on Universal Credit, with top up payments available for eligible claimants whose Universal Credit entitlement is less.”
