Liberal Democrat Councillors have called on the Chancellor of the Exchequer, Rishi Sunak MP, to end the financial uncertainly for Oldham Borough’s poorest families and make a one-year temporary rise of £20-a-week in Universal Credit payments permanent.  The increase was announced in April at the start of the Covid-19 pandemic; now with the deferment of the Chancellor’s Autumn Budget until Spring, there is currently no guarantee that the rise will be made permanent next year.

Liberal Democrat Leader Councillor Howard Sykes MBE has added his voice, and that of his party colleagues, to the call from many of Britain’s leading charities for the uncertainty to be ended by writing to the Chancellor asking for the rise to be made permanent.

Commenting, Councillor Sykes said:  “With the economic downturn that has accompanied the Covid-19 pandemic, and the ending of furlough at the end of this month, more and more Oldham households without employment will be dependent upon Universal Credit for many more months, maybe years, to come.  The temporary uplift of £20 per week, or £1,040 a year, is a Godsend to our poorest residents and their families.  For many it represents the difference between being able to put food before the family at mealtimes or keeping the lights on or keeping their home warm; or being unable to do so.  It is my hope that the Chancellor does the principled thing and makes the increase permanent.”

Letter to the Chancellor of the Exchequer

From: Howard Sykes <howard.sykes@oldham.gov.uk>
Sent: 01 October 2020 16:37
To: Public.enquiries@hmtreasury.gov.uk
Cc: Howard Sykes <howard.sykes@oldham.gov.uk>
Subject: Please make the temporary £20-a-week rise in Universal Credit permanent

The Chancellor of the Exchequer, The Rt Hon Rishi Sunak MP

By email to: Public.enquiries@hmtreasury.gov.uk  

Dear Chancellor,

I am writing to you to add my voice, and those of my fellow Liberal Democrat Councillors at Oldham Council, in support of the call by the many charitable organisations which have this week written to you seeking to make the temporary £20-a-week rise in Universal Credit permanent.

As Councillors, we have the great privilege of representing constituents in the Borough of Oldham.  Sadly, it is the misfortune of many of the people of our Borough to be amongst the poorest citizens of the United Kingdom.  This poverty is most acute in our inner-area wards and amongst our lowest-income families; child poverty being at levels that are truly shocking. 

After once being the foremost and richest textile town in the British Empire 100 years ago, our borough’s residents are now largely reliant on employment in the service industries (care, distribution, leisure, retail, leisure, and transport).  These have traditionally been low-paid and increasingly transient with many residents being employed on seasonal, temporary or zero hours contracts. 

I am sure that you will fully appreciate that, since the onset of the Covid-19 pandemic, many of these workers have been furloughed, and workers in increasing numbers are being laid off.  This situation will be exacerbated further when furlough formally ends at the end of this month.

Many redundant workers are turning to Universal Credit to provide an income; in many cases they were already in receipt of this as they were the lowest-paid or employed part-time or in casual situations.  In any case, our residents are already all too familiar with the bureaucracy and tribulations of claiming Universal Credit as Oldham was one of the areas chosen by government in which to first pilot the new provision.

The local figures for those now claiming Universal Credit speak volumes. Between 12th March and 13th August 2020, the number of claimants in Oldham rose by 6,515 to a total of 13,985 claimants. 

It is clear from your recent Ministerial statement, indicating that non-“viable” jobs will be lost after furlough ends on October 31, that these figures will rise significantly both locally and nationally.  Although some areas of the UK with a higher skills base and technology-based employment may recover more quickly from recession, Oldham, without these, has lower economic resilience and the downturn here is likely to be, as it has been during past recessions, more pronounced and longer-lasting.

Consequently, many more Oldham households will be dependent upon Universal Credit for many more months, maybe years, to come.

The Joseph Rowntree Foundation has recently published research to say that 16 million people will suffer if the uplift in benefit income is removed next April.  I regret to say that many thousands of these citizens would be my fellow residents in this borough.

Chancellor, the temporary uplift of £20 per week, or £1,040 a year, if made permanent would be a Godsend to our poorest residents and their families. For many it will represent the difference between being able to put food before the family at mealtimes or keeping the lights on or keeping their home warm; or being unable to do so.

I ask you too to look to our nation’s sick and disabled citizens, more than a million of whom are dependent on older ‘legacy’ benefits. They too would benefit from a guarantee of permanence.

You have announced that the Autumn Budget has now been deferred to next Spring. I ask you not to wait until then to end the uncertainty and to make a clear and principled policy decision now to support this nation’s poorest citizens by declaring the £20-a-week Universal Credit rise to be permanent.

With my thanks for your attention to this matter.

Yours sincerely.