Labour Party’s reduction in Universal Credit: Why will the 100-pound weekly benefit be cut?
Britain’s new Labour government has made a major announcement. The resource of a few Universal Credit (UC) claimants is now going to be cut with the aid of a hundred kilos in keeping with week. The flow is being added in the name of the betterment of the welfare system, however it has aroused controversy and tension nationwide.
Where will this cut come from?
Under Universal Credit, there is also an extra payment named as “LCWRA” (Limited Capability for Work and Work-Related Activity). So far, individuals who are unable to work receive extra money of around £416 per month. But under the new government policy, this can be cut, because of which such individuals might have to lose around £100 per week.
The government claims that its intention is to encourage more and more individuals to be working, so that they are not reliant on the state. But critics think that the government does not realize that it is not simple for sick or disabled people to work.
Who will be most affected?
This adjustment could impact around 1,10,000 young disabled individuals, particularly those below the age of 22 years. These individuals are already unable to work because of physical or mental illness, and now their financial issues can rise further.
Besides this, the government is also going to tighten the eligibility for Personal Independence Payments (PIP). It can hit around 8 lakh individuals. All this is a part of the government’s big plan, where it is aiming to cut the spending on the welfare system by 5 billion pounds annually by 2030.
What is the government saying?
Finance Minister Rachel Reeves and Work and Pensions Secretary Liz Kendall add that the existing welfare system is very costly to the nation. They add that the system does not incentivize individuals to move towards employment, but rather they stay reliant on state support.
Reeves states that we want a machine that makes people unbiased, now not one which constantly leaves them relying on authorities aid. She additionally states that it’s far the responsibility of the government to spend the cash of the u . S . A . And reduce down the deficit.
Opposition and resentment
The scheme is being criticized severely. The majority of organizations that work for the disabled, opposition parties and a few MPs from the Labour Party itself are opposed to this move.
A non-governmental organization called Disability Rights UK has cautioned that the move will make it harder for disabled individuals. Their earnings will be reduced, as a result of which they will be unable to fulfill their basic needs appropriately.
Besides, there is a fear that the reduction will also raise the burden on NHS (National Health Service) and social services, as more individuals will approach the government.
Political impact
Numerous differences on this matter have existed within the Labor Party as well. Over 100 Labor MPs, according to reports, have written a letter to the government requesting it to reconsider this move. They claim that the party has long stood in favor of the weaker section of society, and this step is contrary to that very spirit.
Protests in the nation are also being witnessed against this move. Lately, thousands took to London’s streets carrying the slogan “No More Austerity 2.0” and called for increased taxes on the wealthy, so that the poor are assisted.
Economic questions
Numerous economists have been concerned about this reduction as well. According to them, this choice can contribute to more poverty and inequality, which will affect the economy and public services of the nation negatively.
Few specialists also add that the cost saving planned by the government will not be helpful in the long term, since it will augment people’s needs and issues and the government spending might also rise in the end.
What will happen next?
The greatest challenge for the government at this moment is how to meet its financial commitment, but simultaneously shield the weaker sections of the society.
The fortnightly reduction of 100 pounds in Universal Credit has become a huge and emotive issue. Not only will it impact the lives of millions of individuals, but this move will also decide the future direction of Britain’s welfare policy in the next few years.
Now it will be seen if the government revises this or not, and if it alters this scheme with a view to the people’s concerns.
FAQs
1. What is the Universal Credit cut announced by the Labour government?
The government plans to reduce weekly Universal Credit payments by £100 for some claimants by cutting the LCWRA element, affecting those unable to work.
2. What is LCWRA under Universal Credit?
LCWRA (Limited Capability for Work and Work-Related Activity) is an extra monthly payment of around £416 for people who can’t work due to health conditions.
3. Who will be most affected by the Universal Credit cut?
Around 110,000 young disabled people under age 22 will be hit hardest, losing critical income despite not being able to work due to illness or disability.
