Esther McVey 'tells Cabinet families will lose up to £200 per month under Universal Credit'

Posted On: 
6th October 2018

The Work and Pensions Secretary has reportedly told the Cabinet that millions of families could lose £200 per month under Universal Credit. 

The Work and Pensions Secretary is reported to have confirmed charities' fears about the new benefit payments.
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Ms McVey said the changes would see half of all lone parents and two-thirds of working-age couples with children lose around £2,400 per year, according to The Times.

The proposed benefit - which replaces a range of other state handouts - has drawn heavy criticism from charities and campaign groups.

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Last week, the Trussell Trust warned that food bank usage had soared by over 50 percent in areas where it has been introduced. 

Cabinet members also reportedly discussed fears that the monthly Universal Credit payment could cause serious cashflow payments, as the benefits it replaces were paid at different points in the month. 

Torsten Bell, director of think-tank the Resolution Foundation, told The TImes that more investment was needed to prevent the failure of Universal Credit.

“It’s very welcome that ministers are discussing in private the risks of this potentially toxic combination, but what we really need to see is action to halt the cuts to the benefits that low and middle-income families rely on, many of which are still to come,” he said. 

“For those families there is not much point telling them that austerity has ended while actively choosing to reduce their living standards.”

The Department for Work and Pensions has not commented on the report