Universal Credit architect demands £20 cut is axed to stop 840,000 plunging into poverty

Tory peer Philippa Stroud helped Iain Duncan Smith design the profit and her assume tank has hyperlinks to Boris Johnson himself. But at this time she turned her affect on the Prime Minister

Tory peer Baroness Stroud

A Tory architect of Universal Credit has demanded Boris Johnson scrap the £20-a-week cut – or threat throwing 840,000 Brits into poverty.

Philippa Stroud, who was Iain Duncan Smith’s Special Advisor when he designed the profit, at this time joined charities, landlords, debt teams, mortgage lenders, unions and lots of Tory MPs in urging a Tory U-turn.

The Conservative peer warned the cut subsequent month could have “will have immediate knock on effects in terms of poverty”.

The Legatum Institute, of which she is chief government, estimated the change will hit 290,000 youngsters, 520,000 working-age adults and 30,000 pensioners who’re at the moment simply above the poverty line.

Think tank Legatum has hyperlinks to the Prime Minister himself. It was at a Legatum Institute occasion in 2017 that Mr Johnson made notorious feedback about “bodies” in Libya.

In the identical year, a senior Legatum determine reportedly helped Mr Johnson draw up an ultimatum to Theresa May urging her to take a harder stance on Brexit.

It got here as distinguished Tory MP Tracey Crouch broke ranks to say the £20 uplift “should stay”.

The former minister, common throughout Westminster, instructed i News she was “deeply uncomfortable” with the cut including: “It is happening at a time where other things are increasing such as energy bills and food bills and everything else. So personally I think it should stay.”

Prominent Tory MP Tracey Crouch broke ranks to say the £20 uplift “should stay”

Legatum evaluation at this time discovered the £20-a-week ‘uplift’ in Universal Credit and Working Tax Credit, in addition to axing the Minimum Income Floor for self-employed claimants, has “insulated” round 840,000 individuals from slipping into poverty.

Those measures could have been scrapped for all claimants by November 12 – affecting that insulation for 710,000 individuals in working-age households and 130,000 individuals in workless households.

Of these hit, essentially the most (360,000) are in households of a pair with youngsters, Legatum stated.

Baroness Stroud stated: “It’s vital that when MPs of all parties debate the £20 uplift in Universal Credit, they do so in possession of the full facts.

“The Legatum Institute’s Nowcasting Report clearly indicates that the removal of the Universal Credit uplift will have immediate knock on effects in terms of poverty, increasing hardship for 840,000 more people in the UK, 290,000 of whom are children.

“Instead of withdrawing Universal Credit at this perilous time, we should be focusing our collective attention on ways to unlock prosperity across all of our regions and communities.”

Iain Duncan Smith has additionally insisted the £20-a-week cut should be stopped.

The Department for Work and Pensions has insisted self-employed individuals won’t instantly be subjected to the Minimum Income Floor – which limits advantages to what they might get in the event that they earned minimal wage.

A Government spokesperson stated: “As announced by the Chancellor at the Budget, the uplift to Universal Credit was always temporary.

“It was designed to help claimants through the economic shock and financial disruption of the toughest stages of the pandemic, and it has done so.

“Universal Credit will continue to provide vital support for those both in and out of work and it’s right that the Government should focus on our Plan for Jobs, supporting people back into work and supporting those already employed to progress and earn more.”

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