Imminent cut to Universal Credit of £20-a-week set to hit 1 in 7 in Coventry.

Local charity warns of increased debt and hardship if ‘lifeline’ ends in October.

Coventry Citizens Advice is urging the government against a cut to Universal Credit that would impact 1 in 7 working-age people in Coventry.

According to the latest available figures, approximately 40% of residents set to see their benefits drop are families with children and 37% are already in work.

Staff and volunteers at the local charity have helped 2,767 people with Universal Credit since March last year. It says the £20 a week increase has been a ‘lifeline’ and has supported people who were already struggling before the pandemic as well as those hit by Covid job losses.

Cases seen by frontline advisers include:

• A support worker who had to take time off work after catching coronavirus, which had exacerbated their existing health conditions. They fear they will fall into housing debt without the £20 a week increase.
• A single parent who is able to pay for after school childcare costs while they work thanks to the £20 increase. This has helped them stay in their job and pay essential bills.

The charity warns a cut to the benefit this autumn – as energy bills rise with the colder weather – will see many struggle to afford their essential costs. It fears a drop in income could be particularly difficult for new benefits claimants who may be unaware of the looming cut.

Kate Algate, Chief Officer of Coventry Citizens Advice, said:

“Every day, our staff and volunteers see the difference the increase to Universal Credit has made to families. It’s what has helped them keep their heads above water.

“Without that extra money, we fear we’d see more people coming to us in debt, unable to pay their bills or turning to food banks because they can’t afford the essentials.

“As we look to rebuild from Covid, the government must invest in the benefits system and keep this vital lifeline.”

 -ends-

For more information contact: Ed Hodson

Tel: 024 76252025

We give people the knowledge and confidence they need to find their way forward – whoever they are, and whatever their problem.

1. Figures on how many people will see a cut to their benefits refer to the working age population. Data from May 2021.
2. The latest available data for the number of families with children on Universal Credit is from February 2021.