The impact of the Universal Credit cut

This report from UK think tank the Legatum Institute looks at a policy poverty simulator and the 840,000 more people in poverty since the cut.

Government Covid response policy has insulated many families from poverty. In an attempt to mitigate some of the financial impacts of the Covid-19 crisis, the Government has introduced a range of financial support for families and businesses. These include a temporary increase of £20 a week to Universal Credit and Working Tax Credits and the suspension of the Minimum Income Floor (that applies to self-employed people claiming Universal Credit). We estimate that these policies alone protected some 840,000 people from poverty in Quarter 2, 2021. In other words, without these changes, 840,000 more people would have been in poverty in Q2 2021 than was actually the case.

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