WIREDGOV

Whilst all eyes were on the Chancellor as he set out his Spending Review, DWP Secretary of State, Thérèse Coffey too was making a funding annoucement. Whilst Sunak told the nation how he intended to spend billions, Coffey told JSA, ESA and Income Support claimants that they would be receiving an extra 37p a week next year.

In the Spring, the Chancellor, in recognition that the rates of Univeral Credit (UC) were simply not enough, increased the benefit by an extra £20 a week. This was very welcome. People in housing need told us that having that boost to their income meant they were able to buy more fresh fruit,  vegetables and meat. But not all claimants gained. Despite having as great a need, people claiming JSA, ESA or Income Support did not see an increase.  

Since then, Homeless Link and others have been campaigining with JRF and DBC to make the case for keeping the extra UC £20 a week beyond the end of the financial year and for that income boost to be extended to those claiming JSA, ESA or Income Support. So when neither the Chancellor nor the DWP Secretary of State made the annoucment we were hoping for, we were deeply disappointed that not only was there no extension for the £20 a week boost beyond March 2021, there would be no equivalent boost for those not on UC. In fact, those receiving JSA, ESA or Income support will see an increase of a mere 37p come 12 April 2021.   

In the same announcement, Coffey also confirmed that the local housing allowance (LHA) rate will be frozen in cash terms from April 2021. What this means is that the LHA will once again drop below the amount needed to cover the 30th percentile of rents in each area and the gap between rents charged and benefit received will grow wider. 

However, there may be the faintest glimmer of hope. Towards the end of her announcement, Coffey referred to the extra £20 a week for UC claimants as being designed to support those facing the most financial disruption as a result of the pandemic. She went on to say, “As the Government has done throughout this crisis, it will continue to assess how best to support low-income families, which is why we will look at the economic and health context in the new year.” This may mean the extra £20 a week could continue to be paid to UC claimants beyond the end of the financial year, if Government still believe it is the best way to support low-income claimants. 

So, let’s look ahead to the new year. As things stand, what do we know will happen? We know from Coffey’s announcement that from April 2021 the LHA rate will begin, in effect, to fall. We know that there is no prospect of a change to the benefit cap. We know that March 2021 will see the end of the six-month eviction notice period, which means (lawful) evictions will start again. Given this, we can’t see how a Spring time cut to UC can be justified. If you agree, please get in touch with us. As always, it is your insight and knowledge that enables us to influence Government, in this case, to recognise need to maintain the current level of UC to ensure that as few people as possible are evicted from their homes in 2021.