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

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.

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.

South West TUC Regional Secretary Nigel Costley said: 

“Everyone should have enough money to live on yet many are struggling to make ends meet here.

"The figures also starkly show how difficult it can be to find decent, secure, well paid work in many parts of the region. Many workers in coastal and rural areas only have temporary, low paid work available. Universal credit is therefore a lifeline for them.

“If the universal credit cut goes ahead many working families – and key workers – up and down the region will be forced to get by on much less every week. This is levelling down – not levelling up as we were promised.  

“Ministers must abandon this cruel cut that will hit low-income working families. We need a social security system that helps people get back on their feet – not one that locks them in poverty.

“And we need decent jobs on decent pay for every worker.

“That means increasing the minimum wage, investing to create good green jobs, tackling the scourge of insecure work, and giving all our key workers a proper pay rise. 

"Simply cutting universal credit is not the way to create decent work.”