Dear constituent,
Thank you for contacting me about the temporary £20 per week increase to Universal Credit.
I appreciate the economic impact the Coronavirus outbreak is having on people of all ages and there is much activity across government departments to help with supporting, creating and protecting jobs.
I am encouraged by the range of support and advice being put in place, particularly through the Plan for Jobs – Plan for Jobs - GOV.UK (www.gov.uk). This provides funding to ensure more people get tailored Jobcentre Plus support to help them find work and to build the skills they need.
I welcome the creation of the £2.9 billion Restart scheme, accessible to people of all ages and which commenced on 28 June 2021; with referrals to providers from 12 July. The scheme provides intensive and tailored support to unemployed people who have been out of work for over 12 months in England and Wales, to help them into work.
JCP support to find work includes the Sector-based Work Academy Programme (SWAP), which is for benefit claimants of all ages in England and Scotland and comprises pre-employment training, work experience and a job interview in a placement lasting up to six weeks. SWAPs help participants retrain and pivot towards surging sectors to meet employer demand wherever they live, opening the door to jobs and potential careers they may not have otherwise considered.
The Job Finding Support (JFS) is another online valuable tool which provides one-to-one support across Great Britain to help those who have recently become unemployed find work. Recognising that many of those who are currently looking for work have been in continuous employment for many years, JFS aims to address any skill gaps and help people move rapidly back into work.
These significant measures are all designed to support people and as we have seen recently, the number of vacancies is increasing and the OECD has indicated that the UK is the fastest growing economy in the G7, which all create the circumstances in which job creation opportunities are enhanced for those not in work and those wishing to move into alternative employment.
The Government has outlined that the £20 per week increased to Universal Credit was not intended to be a permanent increase in the rate of benefits. Alongside the temporary increase to Universal Credit and Tax Credits, the Government invested over £352 billion in measures to create, support and protect jobs and businesses – as well as introduced measures such as mortgage holidays and additional support for renters, and has worked with energy suppliers to protect those struggling with energy bills. Over the last year, the Government has injected an additional £9 billion into our welfare system, supporting our most vulnerable families and people. We have boosted the welfare safety net by over £9 billion since the beginning of the pandemic, through the temporary £20 weekly uplift to Universal Credit, with eligible Working Tax Credit claimants receiving a one-off payment of £500. This builds on the 1.7 per cent increase in the value of working age benefits that came into effect in April 2020, benefiting around 2.5 million households.
In addition, steps have been taken to significantly increase support for lower income families with housing costs. We have increased the local housing allowance rates for housing benefit and Universal Credit claimants to the 30th percentile of local rents – with over 1.5 million households already gaining over £600 a year in additional support.
In addition, up to £220 million has been made available to councils through our Holiday Activities and Food Programme, helping disadvantaged children and this will help local authorities to coordinate free holiday provision, including healthy food and enriching activities. The programme will be available to children in every local authority in England.
In the 10 years prior to the pandemic – employment was at record high levels, thanks to the Government’s careful handling of the economy. This allowed the Government to provide an unprecedented response during the past 18 months. Now as we open up and our recovery gathers pace, it’s right that focus is switched to getting people back into work and improving their prospects. To support this the Government announced a multi-billion-pound Plan for Jobs, referred to above.
I am encouraged to see this already delivering for those who have been affected by the pandemic including, for example, through the Kickstart scheme, which has already seen over 263,000 approved roles created from a range of different sectors for 16 to 24 year olds on Universal Credit, with over 50,000 young people already in Kickstart roles. This will give young people the practical experience that we know is so crucial in securing sustainable employment. Furthermore, the £2.9 billion Restart scheme will provide intensive help to over a million jobseekers who have been out of work for over 12 months.
As we move to the next phase of our national economic recovery, I know that the Government's priority is supporting people back into work and helping those already employed to progress and earn more, through the Plan for Jobs. The Plan for Jobs is an ambitious and comprehensive strategy designed to support people into work as we recover from Covid-19, it includes:
• Supporting long-term unemployed people into work through our £2.9 billion Restart scheme.
• Helping young people into work through the £2 billion Kickstart scheme, with 69,000 young people having already taken up Kickstart jobs.
• Doubling the number of Work Coaches to 27,000, giving jobseekers the personalised and intensive support they need to move back into work.
• Investing over £200 million in the Job Entry Targeted Support scheme, helping jobs seekers into work.
• Launching a Lifetime Skills Guarantee, currently being legislated for through the Skills and Post-16 Education Bill, to ensure that people can get the skills they need at every stage of their life.
Finally, I believe it is important to consider that extending the £20 increase by another 12 months – or making it permanent – would cost over £6 billion per year. That is equivalent to adding 1p on the basic rate of income tax together with a further 5p on fuel duty.
Thank you for getting in contact.
Yours sincerely,