Oldham MP: Covid responsible for over 50% of Universal Credit claimants

Oldham East and Saddleworth MP Debbie Abrahams has stated that over half of the 14,633 people receiving Universal Credit (UC) in her constituency started to claim social security support since the pandemic began.

In a House of Commons speech during which she urged the Government to keep the £20 ‘uplift’ for people claiming Universal Credit, and to extend this to people on legacy support, the local MP said: “As the Covid crisis hit, not everyone could work from home and it was the low paid, in vulnerable sectors such as hospitality and leisure, who’ve been most affected, driving the increase in UC claimants.  

“We know that this health crisis is far from over, and neither are impacts on the economy and jobs.

"People need reassurance, that in their time of need, an adequate safety net is there.  

“In my Oldham East and Saddleworth constituency more than half of the 14,633 claimants are now claiming UC as a result of the pandemic. 

“Many have contacted me about the debate.

"But it wasn’t just those relying on UC who have written to me reflecting the recent poll that showed 74% of the public support the increase in UC and want to see it extended beyond March.”

As Chair of the UC All Party Parliamentary Group (APPG), Ms Abrahams held an inquiry into the impact of Covid on claimants last spring and made a number of recommendations to the Chancellor, including:

Retain the £20 per week uplift to standard allowance beyond April

Extend the £20 per week uplift to legacy benefits

Offer new UC claimants an initial non-repayable starter payment instead of making them wait five weeks for their first payment, as recommended by the Work and Pensions Select Committee

In a recent report the Joseph Rowntree Foundation reported that most families with children in receipt of Universal Credit or Working Tax Credit had to go without essentials, were building up debt and falling behind with their bills or rent. 

Ms Abrahams added: “Save The Children have estimated that withdrawing this uplift will increase child poverty by 200,000 in 2021.

"The Resolution Foundation have estimated that by 2024 there will be an additional 730,000 children living in poverty.

“But even with this uplift, people living on UC are struggling to manage.

"Turn2Us data shows one in five people on UC ‘always’ run out of money compared with 8% not reliant on UC. 

“Citizens’ Advice estimate that half a million people have accrued rent arrears since the start of the pandemic with an average of £730 debt.

"And of course, the ban on evictions also runs out at the end of March. 

“Covid saw those already struggling to stay afloat bear the brunt of the economic and the health burden. 

“We cannot, we must not, let them down.

"We must extend the UC uplift."

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