Universal Credit

1. Questions to the First Minister – in the Senedd on 20 October 2020.

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Photo of Joyce Watson Joyce Watson Labour

(Translated)

4. What assessment has the First Minister made of the increase in the number of people claiming universal credit? OQ55740

Photo of Mark Drakeford Mark Drakeford Labour 2:14, 20 October 2020

Llywydd, I thank Joyce Watson for that. Between February and September of this year, a rise of over 120,000 claimants of universal credit took place in Wales, and that was an increase of 80 per cent. The September claimant count stood at 271,186 people, compared to 150,527 back in February.

Photo of Joyce Watson Joyce Watson Labour 2:15, 20 October 2020

I thank you for your answer, First Minister. In April, UK Government increased universal credit payments by £20 a week, and that indeed did serve as a lifeline for many families during the pandemic. But this increase is only temporary and it's due to end in April 2021. There have been many, many calls from many, many charities right across the UK to request continuation of that extra £20 a week, but despite that, the UK Government have so far not committed to making that increase permanent, and therefore it's estimated that if the additional payment is stopped as planned, over 4 million families will lose an equivalent income of £1,000 a year overnight, and that's plunging thousands into poverty. First Minister, what discussions have you had with UK Ministers regarding making this temporary uplift permanent?

Photo of Mark Drakeford Mark Drakeford Labour 2:16, 20 October 2020

Well, Llywydd, I want to agree absolutely with Joyce Watson. That £20 a week is a real lifeline for so many families here in Wales, families out of work and in work, who work in low-paid occupations. It was very disappointing that the Chancellor, when he had an opportunity only a couple of weeks ago in announcing other ongoing support, that he did not commit to continuing that £20 a week lifeline for so many families across the United Kingdom. I can assure Joyce Watson that this is raised directly with UK Ministers when I have an opportunity; our finance Minister will be meeting again with UK Ministers this week, it's on the agenda for her to raise it with them as well.

I think the Member will know that I had the privilege of sharing a platform with the former Prime Minister, Gordon Brown, at the weekend, speaking on behalf of the Alliance for Full Employment. I was very pleased to see the Archbishop of Canterbury writing to Gordon Brown yesterday, setting out his support for the alliance and focusing, in what he said, on child poverty and on the £20 that is currently available to families through that additional sum in universal credit. And absolutely, any government that is serious about sustaining families through these difficult times wouldn't hesitate to make that £20 a permanent addition to the incomes of some of the poorest people in our country.