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Evidence and consensus grows on need for overhaul of Universal Credit

The Resolution Foundation has today published evidence that lower-income households are twice as likely as richer ones to have increased their debts during the Covid-19 crisis.

Responding to the news, Peter Tutton, Head of Policy, said:

“Today’s report from the Resolution Foundation is the latest in a growing number that highlight the disproportionate hardship being faced by low-income households as a result of the pandemic. Our own research has shown that 4.6 million people have been negatively affected by Covid-19, accumulating a tsunami of £6.1 billion of arrears and debt that is set to grow if left unchecked.

“As this crisis deepens and forbearance periods and payment holidays come to an end, any households already behind will be left staring down the barrel of serious hardship unless further support measures are announced. As Stephen Timms MP, chair of the social security select committee, has argued today, this must begin with Universal Credit. 

We need to see an increase in support to cover realistic household costs and the scrapping of the five week wait and advance payments, which burden new claimants with debt and repayments that undermine the value of support.”