Changes in social benefits push thousands into poverty

• Approximately 50,000 people may find themselves in poverty due to cuts in benefits.
• Changes in Universal Credit will lead to reduced support for new applicants.
• The government plans to review the assessment system for disability.

Several tens of thousands of people again find themselves at risk of poverty due to cuts in social benefits, regardless of recent changes in legislation. According to the report from the Committee on Work and Pensions, nearly 50,000 individuals who will become disabled or ill may find themselves in poverty by the end of the decade due to remaining reforms.

Reductions in benefit payments for health elements under Universal Credit (UC) will take effect from April of the upcoming year. Monthly payments for new applicants will decrease from £423.27 to £217.26. At the same time, the standard Universal Credit rate will increase for all applicants by £17.39 per month, which is the first instance when payments will increase above the rate of inflation.

The committee welcomes this increase, but emphasizes that serious problems remain due to cuts in financial support for new disabled individuals. According to the words of committee chair Debbie Abrahams, the government needs to assess the impact of cuts on poverty, health, and employment.

The government stated that reforms aim to support those who can work and ensure a safety net for those who need it. They also plan to conduct a review of the assessment process for payments related to disability, in cooperation with people with disabilities.

Tags: Well-being