Universal credit cut will hit nearly 200,000 working families in Yorkshire and the Humber

23 Jul 2021 11:43 AM

The TUC has today (Friday) warned that nearly 200,000 working families – and many key worker households – will be worse off in Yorkshire and the Humber as a result of the government’s planned cut to universal credit.

• Union body publishes regional and constituency impact on working families of slashing universal credit  
• Most families hit by £1040pa cut are in work, say anti-poverty campaigners
• Many of those affected by cut will be key workers, warns TUC 
• Cutting universal credit is “levelling down”  

New analysis published by the union body reveals the regional and local impact cutting universal Credit will have on low-paid workers.

Majority of those hit by autumn cut are working families 

194,000 workers in the region are currently receiving universal credit – the equivalent of around 2 in 5 (38%) of all universal credit recipients. They will all be hit by the £20pw cut. 

However, the working tax credit is also being cut, having also been raised by £20pw in early 2020. 

So the majority of those affected by the £20pw cut to benefits this autumn will be families who are working, according to the Joseph Rowntree Foundation (JRF).

The TUC says low-paid key workers will be among those worst affected. 

TUC research published last week showed that one million children in key worker households are currently growing up poverty – with many currently receiving in-work benefits like universal credit.

Local breakdown

Today’s analysis breaks down the number of people receiving universal credit by region and local constituency.

It shows that even in wealthier parts of the country the cut to universal credit will impact heavily on low-paid workers.

For example, in the Chancellor Rishi Sunak’s constituency (Richmond) nearly half (48%) of people currently receiving universal credit are in work – with 3,025 workers in the constituency depending on it. This number will only grow as more families transfer over from the working tax credit.

Vital lifeline

The TUC says the £20 increase in universal credit has been a “vital lifeline” for low-paid workers – and that reducing a crucial in-work support will push more families below the breadline.  

The TUC says a decent social security system is also essential for helping those who lose their jobs get back on their feet and back into work.

In addition to stopping the planned £20pw cut to universal credit, the government must increase the minimum wage to £10 an hour and urgently bring forward an employment bill to tackle insecure work, says the union body.

Click here for the full press release