Oldham MP urges Government to ‘guarantee our essentials’

Oldham East and Saddleworth MP Debbie Abrahams

Oldham East and Saddleworth MP Debbie Abrahams is calling on the Government to reform the Universal Credit system to ensure that everyone can afford essentials during the cost of living crisis.

The local MP, who is a member of the work and pensions select committee and also wants an equivalent reform for legacy benefit claimants, said: “Losing your job, becoming sick or disable, having caring responsibilities, everyone’s circumstances can change.

"When they do, the social security system should ensure no one goes without the essentials, but currently it doesn’t.

“When events like these happen, most people would expect our social security system to support them, and for this support to be based on an objective calculation of what things cost, but this has never been the case.”

Ms Abrahams has been working with the Joseph Rowntree Foundation (JRF) charity, which has released a report entitled 'Guarantee our Essentials', which says that 90% of low-income households on Universal Credit are currently going without everyday essentials.

Their report cites that social security support has eroded over decades and that since it was introduced in 2012, the basic rate (‘standard allowance’) of Universal Credit is now at its lowest ever level as a proportion of average earnings – 10.5% for under 25s and 13% for over 25s.

This compares with 22% when it was first introduced in 1946. 

In addition, 66% of the public think the basic rate of Universal Credit is too low with almost half of households seeing their payments reduced by deductions and caps.

For example, a household can lose 25% of their standard allowance to repay debts to DWP such as a loan to cover the five weeks individuals have to wait until they receive their first payment.

Ms Abrahams added: “The evidence is clear, inadequate social security is the main driver of food bank demand, with almost 1.3 million parcels given out by Trussell Trust food banks between April and September 2022. 

“Without an adequate safety net, a setback can be hard to overcome.

"Poverty comes at a significant cost to the individual, but also to the economy and wider society, with downstream costs to public services such as the NHS.

“The Government cannot go on ignoring the evidence that is being presented by organisations like the Joseph Rowntree Foundation.

"They must come up with a plan to help people, including the 4.2m people in work living in poverty, who are really struggling to survive in the current economic crisis.”

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