Cutting Universal Credit at a time when families will already be facing rising inflation and higher unemployment is bad economics, and bad politics

The Resolution Foundation response to the Government’s announcement today that they are going ahead with the £20 a week cut to Universal Credit from this October

Torsten Bell, Chief Executive of the Resolution Foundation, said:

“The decision to cut Universal Credit by £20 a week this October will cut the incomes of the poorest families by over five per cent overnight.

“Doing this when family finances will already face headwinds from rising inflation and the risk of higher unemployment is bad economics, as well as bad politics.

“This huge cut will fall not on the families that have amassed large savings during the crisis, but on poorer families who have been more likely to take on additional debt. There are difficult trade-offs with all major spending decisions, but taking a gamble with family finances and the strength of the recovery this Autumn is the wrong choice.”