Poverty groups have said attempts to address issues with the maligned benefits system will not address the problems it creates
Poverty groups have expressed disappointment after the Westminster government pledged that Universal Credit is “here to stay”.
Chancellor Philip Hammond allocated more money into the much-maligned benefit system in this week’s budget.
However poverty and children’s charities have said that an extra £1 billion being spent on the new system, and claimants who work receiving a boost in their incomes of up to £630, will not address their key concerns over Universal Credit.
Citizens Advice Scotland chief executive Derek Mitchell called for fundamental reforms to be made to the system.
“The chancellor’s statement makes clear that the government acknowledges there are major problems with Universal Credit,” he said.
“Any additional funding is of course welcome, but without more detail we are not convinced the amounts he has announced today will be sufficient to mitigate the very real hardships people are experiencing. We continue to believe that the system needs fundamental reform.”
John Dickie, director of the Child Poverty Action Group in Scotland, welcomed the increase in allowances for those working but echoed calls for fundamental change.
He said: “There is no question that the work allowance increase is good news for families receiving Universal Credit but a bigger salvage operation is still needed for the benefit.
“This is crunch time for Universal Credit. The positive announcements on work allowances need to be followed by a pause in its roll-out to allow for a fundamental review of its design and, crucially, a commitment to restore all the money that’s been taken out of it.”
Matthew Reid, chief executive of The Children’s Society, said not enough has been done to address serious problems with Universal Credit, while the Poverty Alliance’s Peter Kelly said it would continue to fuel poverty in Scotland.
Kelly said: “While we welcome the much needed changes to Universal Credit work allowances, this budget is a missed opportunity for the UK government to fulfil its promise to end austerity. By continuing the damaging freeze on working age and child benefits, this budget risks pushing even more people into poverty.
“In our society we believe in justice and compassion. And yet If current trends continue, by 2021 one in three children in Scotland will be living in poverty. That simply can’t be acceptable. Freezing these benefits at a time of rising living costs has meant a cut to the incomes of families who can least afford it.”
In his speech, Hammond said he would increase the work allowances in Universal Credit by £1,000 – which he said will allow millions of people to earn £630 more automatically from next April.
And the government will invest £1 billion in the new system for the next five years to support those being transferred onto its flagship programme.
The chancellor diminished any hope that the government would review Universal Credit.
“The switch to Universal Credit is a long overdue and necessary reform,” he asserted. “It replaces the broken system left by the last Labour government, a system… that trapped millions on out of work benefits. Universal Credit is here to stay.”
