104,000 workers in Wales are currently receiving Universal Credit – the equivalent of around 2 in 5 (37%) of all universal credit recipients. They will all be hit by the £20 per week 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 Wales TUC says low-paid key workers will be among those worst affected.
Wales TUC research published last week showed that 60,000 children in key worker households are currently growing up poverty – with many currently receiving in-work benefits like Universal Credit.
Today’s analysis breaks shows that the cut to Universal Credit will impact heavily on low-paid workers right across Wales
For example, in the Welsh Secretary Simon Hart’s constituency (Carmarthen West and South Pembrokeshire) nearly half (43%) of people currently receiving Universal Credit are in work – with 2,560 workers in the constituency depending on it. This number will only grow as more families transfer over from the Working Tax Credit.
The Wales 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.
In addition to stopping the planned £20pw cut to Universal Credit, the union body is calling on the UK Government must increase the minimum wage to £10 an hour and urgently bring forward an employment bill to tackle insecure work.
“Everyone should have enough money to live on.
“But if the Universal Credit cut goes ahead tens of thousands of working families in Wales – including key workers – will be forced to get by on much less every week. It is levelling down – not levelling up.
“UK ministers should 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, in every part of the country.
“That means increasing the minimum wage, investing to create good green jobs and tackling the scourge of insecure work. Cutting universal credit isn’t the way to achieve decent work.”
Number of workers receiving universal credit by nation and region (excludes those to be transferred over from the working tax credit)
Region/nation |
Number in work receiving UC |
Total number receiving UC |
% of UC recipients in work |
North East |
100437 |
281759 |
35.6% |
North West |
282131 |
755400 |
37.3% |
Yorkshire and The Humber |
194344 |
518269 |
37.5% |
East Midlands |
166265 |
403272 |
41.2% |
West Midlands |
214730 |
585069 |
36.7% |
East of England |
199459 |
494271 |
40.4% |
London |
375426 |
1015321 |
37.0% |
South East |
274235 |
677609 |
40.5% |
South West |
184983 |
439612 |
42.1% |
Wales |
103609 |
279068 |
37.1% |
Scotland |
176935 |
481263 |
36.8% |
Total |
2,274,976 |
5,938,914 |
38.3% |
Source: TUC analysis of Stat Explore data using May 2021 data
-A full constituency list of working people on universal credit can be found here: https://www.tuc.org.uk/sites/default/files/constituency%20data%20uc.xlsx
-Information on relative levels of wealth and deprivation in parliamentary constituencies can be found here: https://commonslibrary.parliament.uk/research-briefings/cbp-7327/
Contact:
Joe Allen
jallen@tuc.org.uk / 078 775 295 68