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Liverpool Echo
Liverpool Echo
Business
Kate Lally

Universal Credit could rise to at least £120 a week under new plan

A radical plan that would see Universal Credit payments raised has been unveiled after a study showed "inadequate social security levels" are sending more and more people to food banks.

The Trussell Trust and Joseph Rowntree Foundation (JRF) said almost 1.3m food parcels were given out between April and September 2022 alone. The groups also found 90% of low-income households on Universal Credit are regularly going without essentials.

The two charities are now calling for a new "Essentials Guarantee" from the Government. This 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.

READ MORE: Full list of DWP cost of living payments available in March 2023

This would see Universal Credit payments raised to at least £120 per week for a single claimant, and £200 for a couple. Trussell Trust and JRF adds that if the Essentials Guarantee were implemented before full rollout of Universal Credit, it should also be applied to legacy benefits such as Employment and Support Allowance.

The cost of implementing the Essential Guarantee would be an estimated additional £22bn a year, assuming a full rollout of Universal Credit. However, campaigners argue there would be huge savings to public services, as a result of improved outcomes.

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