Universal Credit Uplift Removal
The Council notes that:-
1. More than 5.8 million people nationally claim universal credit and 40% are in work.
2. 8,118 people in Exeter claim Universal credit of which around 43% are in work
3. The Rountree Foundation has warned that the cut of £20 per week will plunge half a million more people into poverty, including 200,000 children.
4. Inflation jumped to 3.2% (Consumer price Index) in August this year -up from 2% in July. This raise in inflation is predicted to continue through the winter months (office for National Statistics)
5. Fuel costs are rising (currently at 12% increase) particularly affecting people on pre-payment meters. (OfGem July 2021). Most providers put pre-payment customers on the highest tariff, creating even more disadvantage for those already on the poverty line.
6. Rents have risen by 5.6% in the last 6 months -at the fastest rate since 2015.
The Council believes that:-
to withhold essential financial help to more than 5.8million Universal Credit claimants will have disastrous negative implications on health and well-being, education, community well-being and the economy.This situation will then create increased financial burden on the Treasury to mitigate against these implications.
Exeter City Council calls for:-
1. HM Government to conduct an urgent review into the payment levels of Universal Credit in relation to the rise in food costs, fuel costs, rent increases and in the light of the removal of the £87 per month uplift afforded during the first tranche of the Covid-19 pandemic.
2. A raise in payment levels in line with the ongoing inflated costs of food, fuel and rents.
Minutes:
Councillor Wright, seconded by Councillor Ghusain, moved a Notice of Motion in the following terms:-
Universal Credit Uplift Removal
The Council notes that:-
1. More than 5.8 million people nationally claim universal credit and 40% are in work.
2. 8,118 people in Exeter claim Universal credit of which around 43% are in work
3. The Rountree Foundation has warned that the cut of £20 per week will plunge half a million more people into poverty, including 200,000 children.
4. Inflation jumped to 3.2% (Consumer price Index) in August this year -up from 2% in July. This raise in inflation is predicted to continue through the winter months (office for National Statistics)
5. Fuel costs are rising (currently at 12% increase) particularly affecting people on pre-payment meters. (OfGem July 2021). Most providers put pre-payment customers on the highest tariff, creating even more disadvantage for those already on the poverty line.
6. Rents have risen by 5.6% in the last 6 months -at the fastest rate since 2015.
The Council believes that:-
to withhold essential financial help to more than 5.8million Universal Credit claimants will have disastrous negative implications on health and well-being, education, community well-being and the economy. This situation will then create increased financial burden on the Treasury to mitigate against these implications.
Exeter City Council calls for:-
1. HM Government to conduct an urgent review into the payment levels of Universal Credit in relation to the rise in food costs, fuel costs, rent increases and in the light of the removal of the £87 per month uplift afforded during the first tranche of the Covid-19 pandemic.
2. A raise in payment levels in line with the ongoing inflated costs of food, fuel and rents.
In presenting her Motion, Councillor Wright spoke from personal experience of the difficulties as a single mother in bringing up children with limited resources and stated that current circumstances were no different.
Councillor D. Moore, as a co-leader of an opposition group, referred to the areas in the city with the highest levels of indices of multiple deprivation which, combined with other financial pressures, would inevitably be the hardest hit. She also referred to the inadequate allocation of £5 million to Devon County Council from a Government nationwide Hardship Fund of £500 million.
Councillor Leadbetter, as the leader of an opposition group, stated that he could support recommendation 1 but not recommendation 2 and asked for separate votes to be taken, Councillor Wright, as mover of the Motion, agreed to his request.
Councillor Ghusain, in seconding the Motion, expressed her surprise that the Government had sought to remove the uplift at a time when food, fuel and heating costs were on the rise, thereby impacting on the poorest families and individuals. Noting that 43% of those on Universal Credit in Exeter were in work, she referred to certain companies now only taking employees back after the Pandemic on lower wages. She urged a review by the Government and an increase of Universal Credit in line with inflation.
Members made the following comments:-
· the removal of the uplift is contrary to Government levelling up aspirations;
· statistics on the disparity between rentals and the Universal Credit support were highlighted at the Customer Focus Scrutiny Committee on 7 October 2021 forcing many to save on food and fuel costs in order to afford to pay their rents;
· the Exeter Food Bank provided support other than food and many people were forced to work more than one job to survive and suggesting that individuals work an extra couple of hours does not address the problem;
· the House of Commons Work and Pensions Select Committee had highlighted the rise in food poverty and the number of families living below the breadline even before the Pandemic, a situation now exacerbated by this Government decision;
· over half of staff in education report providing food and clothing for children;
· the cuts total £87 a month which represents a potential loss of a weekly shop and the Government Hardship Grant is effectively a return to the Poor Laws administration by local parishes and the unsympathetic narrative of the “undeserving poor”; and
· it is merely a subsistence benefit and a civilised society should accept responsibility and support those who, by reason of birth or bad luck, cannot adequately support themselves.
Councillor Wright commended the Motion to Council.
Both parts of the recommendation were put to the vote. Recommendation 1 was CARRIED unanimously and recommendation 2 was CARRIED.
The meeting adjourned at 9.00 pm and re-convened at 9.10 pm.