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The Social Security Benefits Up-rating Order 2021, passed yesterday on Tuesday 9th February, increases social security payments by the rate of CPI inflation (0.5%) from 1st April 2021. However, if the £20 a week uplift to UC is not made permanent in the Budget, this uprating is negated. From April, if the £20 weekly uplift is removed the value of UC’s Standard Allowance will drop by as much as a quarter (25%), when people need this money most. Removing the £20 a week uplift will leave the Standard Allowance for UC worth less in real terms in 2021-22 than when it was first introduced 8 years ago in 2013.

CAS is calling for: The £20 a week uplift to be made permanent

The Social Security Benefits Up-rating Order 2021 increases social security payments by the rate of CPI inflation (0.5%) from 1st April 2021. CAS welcome any increase to social security payments including Universal Credit (UC). However, current legislation prevents the future of the temporary £20 a week uplift to Universal Credit (UC) from being included in this annual review of benefit rates – at a time when uncertainty around the future of the £20 uplift is growing. Due to the benefits freeze from 2016 to 2019, UC rates remained at 2015/16 levels, meaning that in real terms the value of social security payments have fallen.

If the £20 a week uplift to UC is not made permanent, any inflation-related uprating is negated. People on UC are at risk of a serious shock to their income, including the millions claiming for the first time as a result of the pandemic. To avoid a rise in poverty, greater strains on public services and harming economic recovery, the £20 a week uplift must be maintained.

Citizens Advice Scotland (CAS) welcome the opportunity to contribute to the Spending Review process and provide our insight and data. Protecting and maximising household incomes and averting mass unemployment are the essential foundations on which the Spending Review in this time of COVID-19 must be built. The Government can do this by committing to the following actions;

• Implementing targeted job protection initiatives to avert unemployment,
• Strengthening the Universal Credit safety net by ensuring level of payments are maintained at least at current levels,
• Making Universal Credit work for those in work.