Local MPs are calling on the UK Government to make a temporary increase in Universal Credit permanent.
Plaid Cymru MPs, including Ceredigion's Ben Lake, Dwyfor Meirionnydd representative Liz Saville Roberts and Arfon's Hywel Williams, are calling on the Chancellor of the Exchequer to make permanent a temporary increase in Universal Credit, to help protect those at risk of falling further into hardship as a result of the Covid-19 pandemic.
Mr Lake wants the UK Treasury to extend the Universal Credit and Working Tax Credit uplift of £20 a week, brought in at the start of the pandemic, as figures from the Department of Work and Pensions reveal a significant increase in the number of Universal Credit claimants in Ceredigion since March 2020.
There were 1,870 actual claimants in Ceredigion constituency in November 2020, which was 4.3 per cent of the population aged 16-64. The equivalent UK claimant rate was 6.3 per cent.This was 70 higher than October 2020 and 1,040 higher than March 2020, before the UK lockdown began.
There were 400 claimants aged 18-24 in November 2020, 10 lower than October 2020 but 215 higher than March 2020.
Mr Lake said: “The impact of Covid-19 on society has been significant, and the economic consequences locally have resulted in many more people relying on Universal Credit and Working Tax Credit to support themselves and their families through the pandemic.
"The decision last year to increase the standard allowance by £20 a week was widely welcomed, and as Covid-19 continues to cause serious disruption to people’s lives, the UK Government should make this uplift permanent, so that families across the county need not suffer a sudden drop in income at the end of March.
“It is vital therefore that the Universal Credit and Tax Credit uplift is extended as the economic consequences of Covid-19 will continue to be felt for some time yet. Maintaining the £20 a week uplift would offer a lifeline to families trying to get back on their feet, and help stop many falling into a spiral of debt.”
In Dwyfor Meirionnydd, there has been a 118 per cent increase in Universal Credit caseload since March, and a 94 per cent rise over the same period in Arfon.
In a joint statement, Mrs Saville Roberts and Mr Williams said: “Those on the lowest incomes, including many who have lost their jobs as a direct result of the economic fallout from the pandemic, will be hardest hit if the government refuse to maintain the increase rate of Universal Credit.
"The uplift in Universal Credit and Working Tax Credit has been a lifeline for many of my constituents, including many families with young children who were already struggling to afford the basics even before the pandemic hit.
“Too often we hear of constituents suffering all sorts of difficulties, their situation now exacerbated by the effects of the ongoing pandemic and associated restrictions.
“Removing this increase in welfare support at the worst possible time is unforgivable.
“With heart-breaking rising unemployment, some six million people are now reliant on Universal Credit.
“The £20 uplift may seem like small change to the government, but it is the difference between turning the heating on or buying food for the kids for millions of people.
“The permanent uplift of £20-a-week would be a small step towards easing the burden on thousands of people who are struggling financially.
“The government should also make sure that those on legacy benefits receive a comparable uplift and increase the generosity of social security for struggling families.”