As our country continues on the road to recovery form the COVID-19 pandemic, the past week has seen the ending of a number of the emergency support schemes that were put in place to protect jobs, businesses and livelihoods. It was always the case that the unprecedented support made available to millions of households would need to end. These schemes were always intended to be temporary, and their removal is another step on the road of leaving the pandemic behind.
I know the ending of the job retention scheme (furlough),
business support such as the 5% VAT rate being phased out and reduced stamp
duty rates ending will be challenging to some, but it is right we now seek to
remove these tax-payer funded support schemes.
One issue that has been raised with me over the past few
weeks has been the ending of the emergency temporary uplift of £20 per week for
people claiming the Universal Credit benefit.
This has been framed as a ‘cut’ by people with a certain
political agenda, but this is not the case. The uplift was only ever supposed
to be temporary, and was introduced to help people claiming Universal Credit
with anticipated additional costs of having to stay at home during the lockdowns.
Now the lockdowns are a thing of the past, the reason this
additional support was put in place has now come to an end. The Government has
already extended this support well past the end of all COVID-19 restrictions
earlier in August.
The uplift cost £6billion a year to fund, and while this was
justifiable as a one off, at the same time as the Government was supporting
numerous other people and businesses through measures like the furlough and
business support grants, and due to very specific circumstances, it is in my
mind not justifiable as a permanent increase now the circumstances that
necessitated its use have ended. It this uplift was to be made permanent then a
source for the £6billion per year additional funding would have to be
identified.
But we should also be clear that this is not the end of the
support available for households most in need. We do recognise that the months
ahead will be challenging for many. I was pleased to see last week the
Government confirm that vulnerable households across the UK will be able to
access a new £500million support fund to help them with essentials such as fuel
and food costs over the winter months.
The new Household Support Fund will support millions of
households in England and will be distributed by councils in England, who know
their local areas best and can directly help those who need it most, including
for example, through small grants to meet daily needs such as food, clothing,
and utilities. Cash will be made available to Local Authorities like Cornwall
Council from later this month.
With more people in work and the economy bouncing back, the
Government is focused on investing in jobs and skills – increasing prospects
and wages across the country – whilst ensuring those in greatest need can
access vital support to help cover everyday costs. Alongside this, the
government’s Plan for Jobs is helping people move back into employment so they
can earn a regular wage, progress and increase their financial resilience.
With that being said, families will also continue to benefit
from the energy price cap, recent rise in Local Housing Allowance and increases
in the National Living Wage. In terms of support for the vulnerable this
winter, the Household Support Fund mentioned above is additional funding that
goes along with the Warm Home Discount which provides a £140 rebate on energy
bills each winter to over 2.2 million low-income households and the Cold
Weather Payment which provides £25 extra a week for poorer households when the
temperature is consistently below zero.
The Holiday Activities and Food programme will continue over
the Christmas Holidays and to further support for families with children, the
Government has also doubled free childcare for eligible working parents, worth
up to £5,000 per child every year as well as increasing the value of Healthy
Start vouchers by over a third, helping disadvantaged women who are pregnant or
have children under four.
I am pleased to see support, both broader and tailored, made
available for those who need it most, while also acknowledging that we are
going to have to continue to make sensible and responsible decisions on our
public finances in the years ahead, to balance the books for future generations
who will otherwise have to pay for this pandemic.
As always, my office is available for any constituents
needing help, advice or guidance. Please do get in touch if I can help – tel.
01726 829379, email – office@stevedouble.org.uk
