Universal Credit: Rishi Sunak savaged for ‘foolhardy’ uplift cut | Personal Finance | Finance

Rishi Sunak brought in a reduction of Universal Credit’s taper rate from 63 percent to 55 percent in his latest budget last November. However, Dr Fahnbulleh suggested the uplift introduced as a mitigating measure at the start of the pandemic would have helped millions of Britons cope with the ongoing cost of living crisis and growing energy costs. The British economist slammed the Chancellor’s decision as “foolhardy” as she noted the extra money could have helped many “offset the costs” of ballooning bills.

Dr Fahnbulleh said: “The irony is if the Chancellor hadn’t made that completely foolhardy decision to reverse the £20 uplift to Universal Credit.

“If he hadn’t cut it, that £1,000 that households were benefitting from would have offset some of increase in energy bills.

“It was an incredibly shortsighted measure – we knew this cost of living crisis was coming.

“And if the Government wanted to act quickly, that would be the way they could very, very quickly do that and that would insulate some of the households that are really struggling.

JUST IN: ‘The most successful’ business to come out the Dragons’ Den – ‘almost overnight’

“People are making that decision between heating their homes and feeding their kids in the sixth-richest country in the world.”

She added: “That is a measure the Government could do tomorrow if it wanted to.”

A Government spokesperson insisted the Treasury has implemented measures to ensure the cost of living crisis’ impact on everyday Britons is eased.

They said: “We recognise the pressures people are facing with the cost of living, which is why we’re providing support worth around £20 billion this financial year and next to help.

READ MORE: Vladimir Putin is ‘running out of troops’ as crucial Russian military misstep exposed

In April 2022, claimants will see a 3.1 percent increase but due to record-high inflation, those with lower rates could still lose out.

Charities and economists have cautioned that eight DWP and HMRC benefits could see a cut of up to £720 per year

Older Britons on the state pension, who were not granted the potential eight percent increase are likely to be the most affected.