Wales TUC – Universal Credit cut will punish tens of thousands of working families and key workers in Wales

• Tens of thousands of working families in Wales are facing a cut in income of over £1000 as a result of UK Government plans to cut Universal Credit.
• Many of those affected by cut will be key workers, warns TUC
• New Wales TUC analysis shows that 280,000 people in Wales will be hit by the cut – and 104,000 (37%) of those are in work. When taken together with cuts to Working Tax Credits a majority of people hit by the planned cuts are in work. 
• Union body publishes constituency level impact on working families.  

The Wales TUC has today (Friday) warned that tens of thousands of working families in Wales – including many key worker households – will be worse off as a result of the UK Government’s planned cut to Universal Credit.

Majority of those hit by autumn cut are working families 

104,000 workers in Wales are currently receiving Universal Credit – the equivalent of around 2 in 5 (37%) of all universal credit recipients. They will all be hit by the £20 per week cut.

However, the Working Tax Credit is also being cut, having also been raised by £20pw in early 2020.

So the majority of those affected by the £20pw cut to benefits this autumn will be families who are working, according to the Joseph Rowntree Foundation (JRF).

The Wales TUC says low-paid key workers will be among those worst affected.

Wales TUC research published last week showed that 60,000 children in key worker households are currently growing up poverty – with many currently receiving in-work benefits like Universal Credit.

Local breakdown

Today’s analysis breaks shows that the cut to Universal Credit will impact heavily on low-paid workers right across Wales

For example, in the Welsh Secretary Simon Hart’s constituency (Carmarthen West and South Pembrokeshire) nearly half (43%) of people currently receiving Universal Credit are in work – with 2,560 workers in the constituency depending on it. This number will only grow as more families transfer over from the Working Tax Credit.

Vital lifeline

The Wales TUC says the £20 increase in Universal Credit has been a “vital lifeline” for low-paid workers – and that reducing a crucial in-work support will push more families below the breadline.

In addition to stopping the planned £20pw cut to Universal Credit, the union body is calling on the UK Government must increase the minimum wage to £10 an hour and urgently bring forward an employment bill to tackle insecure work..

Wales TUC General Secretary Shavanah Taj said:

“Everyone should have enough money to live on.

“But if the Universal Credit cut goes ahead tens of thousands of working families in Wales – including key workers – will be forced to get by on much less every week. It is levelling down – not levelling up.

“UK ministers should abandon this cruel cut that will hit low-income working families. We need a social security system that helps people get back on their feet – not one that locks them in poverty.

“And we need decent jobs on decent pay for every worker, in every part of the country.

“That means increasing the minimum wage, investing to create good green jobs and tackling the scourge of insecure work. Cutting universal credit isn’t the way to achieve decent work.”