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A charity has raised its concerns about the looming end of the £20-a-week uplift to Universal Credit, describing it as the “biggest overnight cut in benefits since the Second World War”. 

According to the Joseph Rowntree Foundation, 413 out of a total of 632 parliamentary constituencies in England, Wales and Scotland will see more than one in three families and their children affected as a result of the £1,040 a year cut.

Of these constituencies, 191 are held by Conservative MPs and 53 were won at the last general election or in a subsequent by-election.

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March: Sunak extends universal credit uplift

In some Labour-held areas, more than three-quarters of families with children will be affected.

The JRF report comes as Citizens Advice warns that if the planned cut goes ahead, 38% of those on Universal Credit would be in debt after paying just their essential bills, rising to nearly half (49%) of households on Universal Credit in so-called “Red Wall” areas.

The temporary increase in Universal Credit was introduced last year amid the COVID-19 pandemic and extended for six months in March, but MPs and charities have called for it to stay.

The cut, which is due to come into force on 6 October, is expected to have the most severe impact in Yorkshire and the Humber, the North East, North West, and West Midlands.

More on Universal Credit

But the JRF has said the policy change will have “deep and far-reaching consequences on families with children across Britain”.

Katie Schmuecker, the charity’s deputy director of policy and partnerships, said: “We are just over a month away from the UK government imposing the biggest overnight cut to the basic rate of social security since the Second World War.

“This latest analysis lays bare the deep and far-reaching impact that cutting Universal Credit will have on millions of low-income families across Britain.

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April 2020: One million sign up for Universal Credit

“MPs from across the political spectrum are already expressing their deep concerns about this planned cut. Now is the time for all MPs to step up and oppose this cut to their constituents’ living standards.

“Plunging low-income families into deeper poverty and debt as well as sucking billions of pounds out of local economies is no way to level up. It’s not too late for the prime minister and chancellor to listen to the huge opposition to this damaging cut and change course.”

Two examples cited by the JRF are in Peterborough (Conservative), where 64% of working-age families with children will be hit and Bradford West (Labour), where 82% of families with children will be affected.

Naz Shah, MP for the latter constituency, said “additional funding” was needed in her area instead of the planned cut.

She said: “The same party that refused to pay for free school meals to feed hungry children is now refusing to keep the Universal Credit uplift which as research shows will put 500,000 people into poverty and impact those already struggling in my constituency.”

According to analysis from the JRF, on average 21% of all working-age families in Great Britain will see a £1,040 a year cut to their incomes on 6 October.

In the 58 seats newly won by the Tories, that average is 23%, the charity found.

Labour has said it would keep the uplift in place if it was in power and has pledged to eventually replace UC with a “fairer” system.

The party’s shadow work and pensions secretary Jonathan Reynolds said: “The government’s £1,000 a year cut will be a hammer blow to millions of families, hitting the lowest paid hardest and hurting our economic recovery.

“Time is running out for the Conservatives to see sense, back struggling families and cancel their cut to Universal Credit.”

Responding to the report, a government spokesperson said: “The temporary uplift to Universal Credit 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 a vital safety net and with record vacancies available, alongside the successful vaccination rollout, it’s right that we now focus on our Plan for Jobs, helping claimants to increase their earnings by boosting their skills and getting into work, progressing in work or increasing their hours.”

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Sir Keir Starmer set for Donald Trump trade talks as PM walks diplomatic line between EU allies and US on Gaza

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Sir Keir Starmer set for Donald Trump trade talks as PM walks diplomatic line between EU allies and US on Gaza

Gaza and transatlantic trade are set to dominate talks between Donald Trump and Sir Keir Starmer when the pair meet in Scotland on Monday.

Downing Street said the prime minister would discuss “what more can be done to secure the ceasefire [in the Middle East] urgently”, during the meeting at the president’s Turnberry golf course in Ayrshire.

Talks in Qatar over a ceasefire ended on Thursday after the US and Israel withdrew their negotiating teams.

Mr Trump blamed Hamas for the collapse of negotiations as he left the US for Scotland, saying the militant group “didn’t want to make a deal… they want to die”.

Sir Keir has tried to forge close personal ties with the president, frequently praising his actions on the world stage despite clear foreign policy differences between the US and UK.

The approach seemed to pay off in May when Mr Trump announced the agreement of a trade deal with the UK that would see several tariffs lowered.

The two leaders are expected to discuss this agreement when they meet, with the prime minister likely to press the president for a lowering of outstanding tariffs on imports such as steel.

Prior to the visit, the White House said the talks would allow them to “refine the historic US-UK trade deal”.

Extracting promises from the president on the Middle East may be harder though.

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Should aid be dropped into Gaza?

Despite some reports that Mr Trump is growing frustrated with Israel, there is a clear difference in tone between the US and its Western allies.

As he did over the Ukraine war, Sir Keir will have to walk a diplomatic line between the UK’s European allies and the White House.

On Thursday, French President Emmanuel Macron announced his country would formally recognise a Palestinian state in September, the first member of the G7 to do so.

That move was dismissed by Mr Trump, who said it “doesn’t carry any weight”.

Read more from Sky News:
US and EU agree trade deal – with bloc facing 15% tariffs
Geldof accuses Israel of ‘lying’ about Gaza starvation

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Trump: ‘It doesn’t matter what Macron says’

The UK, French and German leaders spoke over the weekend and agreed to work together on the “next phase” in Gaza that would see transitional governance and security arrangements put in place, alongside the large-scale delivery of aid.

Under pressure from members of his own party and cabinet to follow France and signal formal recognition of Palestine, Sir Keir has gradually become more critical of Israel in recent months.

On Friday, the prime minister said “the starvation and denial of humanitarian aid to the Palestinian people, the increasing violence from extremist settler groups, and Israel’s disproportionate military escalation in Gaza are all indefensible”.

Government sources say UK recognition is a matter of “when, not if”, however, it’s thought Downing Street wants to ensure any announcement is made at a time when it can have the greatest diplomatic impact.

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Baby Zainab starved to death in Gaza

Cabinet ministers will be convened in the coming days, during the summer recess, to discuss the situation in Gaza.

The UK has also been working with Jordan to air drop supplies, after Israel said it would allow foreign countries to provide aid to the territory.

President Trump’s trip to Scotland comes ahead of his second state visit to the UK in September.

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Downing Street says Ukraine will also likely be discussed in the meeting with both men reflecting on what can be done to force Russia back to the negotiating table.

After the meeting at Turnberry, the prime minister will travel with the president to Aberdeen for a private engagement.

Mr Trump is also expected to meet Scottish First Minister John Swinney while in the country.

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Crypto isn’t crashing the American dream; it’s renovating it

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Crypto isn’t crashing the American dream; it’s renovating it

Crypto isn’t crashing the American dream; it’s renovating it

The US housing regulator’s decision to recognize crypto assets in mortgage applications marks a historic shift from exclusion to integration, opening new pathways to homeownership.

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Govt vows to protect ‘pavement pints’ and make it easier for pubs to extend their opening hours

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Govt vows to protect 'pavement pints' and make it easier for pubs to extend their opening hours

“A wave of new cafes, bars, music venues and outdoor dining” could come to the UK – as the government unveils plans to overhaul planning rules and “breathe new life into the high street”.

Under the proposals, ministers also want to reform licensing rules to make it easier for disused shops to be converted into hospitality venues.

In a statement, Chancellor Rachel Reeves said she planned to scrap “clunky, outdated rules… to protect pavement pints, al fresco dining and street parties”.

The reforms also aim to prevent existing pubs, clubs, and music venues from suffering noise complaints when new properties hit the market.

Developers who decide to build near those sites will be required to soundproof their buildings.

Customers drink in an outdoor seating area of a pub in London during pandemic in December 2021
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Reuters file pic

As part of dedicated “hospitality zones”, permission for al fresco dining, street parties and extended opening hours will be fast-tracked.

The government says the reforms aim to modernise outdated planning and licensing rules as part of its Plan for Change, to help small businesses and improve local communities.

More on Hospitality

The rough plans will be subject to a “call for evidence” which could further shape policy.

Business Secretary Jonathan Reynolds said the proposals will “put the buzz back into our town centres”.

“Red tape has stood in the way of people’s business ideas for too long. Today we’re slashing those barriers to giving small business owners the freedom to flourish,” he said.

The hospitality industry has broadly welcomed the changes but argued tax reform was also essential.

Kate Nicholls, chairwoman of UKHospitality, described the proposals as “positive and encouraging”.

However, she added: “They can’t on their own offset the immediate and mounting cost pressures facing hospitality businesses which threaten to tax out of existence the businesses and jobs that today’s announcement seeks to support.”

Read more from Sky News:
Licensing reforms for London venues
Pubs forced to adapt to survive

While supporting the reforms, Emma McClarkin, chief executive of the British Beer and Pub Association (BBPA), had a similar message.

“These changes must go hand in hand with meaningful business rates reform, mitigating staggering employment costs, and a cut in beer duty so that pubs can thrive at the heart of the community,” she said.

In July, BBPA estimated that 378 pubs will shut this year across England, Wales and Scotland, compared with 350 closures in 2024, which it said would amount to more than 5,600 direct job losses.

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Pubs closing at a rate of one a day

Bar chain Brewdog announced this week that it would close 10 sites, partly blaming “rising costs, increased regulation, and economic pressures”.

Andrew Griffith MP, shadow business secretary, said: “Though any cutting of red tape for hospitality businesses is welcome, this is pure hypocrisy and inconsistency from Labour.”

He said the government was “crippling the hospitality industry by doubling business rates, imposing a jobs tax and a full-on strangulation of employment red tape”.

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