Universal credit cut will hit nearly 200,000 working families in the South West

3 Sep 2021 11:59 AM

The TUC has today (Friday) warned that over nearly 200,000 working families – and many key worker households – will be worse off in the South West 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”

The new analysis published by the union body also reveals the regional and local impact cutting universal credit will have on low-paid workers.

Majority of those hit by autumn cuts are working families 

185,000 workers in the region are currently receiving universal credit – the equivalent of 2 in 5 (42%) of all universal credit recipients. They will all be hit by the £20pw cut. 

Working tax credits is also being slashed in October, having been raised by £20pw in early 2020.  

This means that 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. 

Key workers among hardest hit

Low-paid key workers will be among those worst affected and the TUC believes this will put further pressure on employers to provide decent pay rises. 

Recent TUC research published this summer showed that one million children in key worker households are currently growing up poverty – with many currently relying on in-work benefits like universal credit to boost poverty wages.

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