Universal Credit: Clarke squrims over uplift return in heated row | Personal Finance | Finance
The Treasury Minister was embroiled in a heated exchange with Susanna Reid and Richard Madeley over the Government’s strategy to address rising costs across the UK. Inflation rose to 9 percent in April, leaving Britons struggling with bills and an increase in National Insurance contributions. Ms Reid questioned whether the Treasury is now considering bringing back the Universal Credit uplift as part of the additional help Boris Johnson pledged to bring in to help.
The uplift, which was originally introduced during the coronavirus pandemic, was removed last October.
Ms Reid said: “One of the things you did was you had a Universal Credit uplift, £20 a week to help people through a really difficult time and that was the pandemic.
“Then took that away because it was apparently no longer needed. You could put that back in as households face fuel poverty and food inflation. Is that something you’re considering?”
The Treasury Minister replied: “On Universal Credit, in December, we made one of the biggest adjustments to the system since its beginning in the form of the very major change to what is called the taper rate, the rate at which benefits are withdrawn as people’s income rises.
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“That was cut from 63p in the pound to 65p in the pound. That is a tax cut worth an average of £1,000 for two million people.”
Ms Reid however appeared unimpressed with the response: “Since then inflation has gone up. People are facing fuel poverty and food poverty.”
But Mr Clarke defended the Government’s strategy, insisting ministers are keeping all options on the table to help Britons.
He said: “The principle is that it is allowing people to keep more of what they earn. And it’s a very important principle for us to stand behind.
“We obviously look at all the options open to us, we’re acutely aware of the challenges facing household finances this year. But we need to make sure that when we act, we act in a targeted and effective way.”
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