Scotland, Wales and Northern Ireland ministers call on UK government to keep Universal Credit uplift
Ministers from Scotland, Wales and Northern Ireland are calling on the UK government to keep the £20 uplift to Universal Credit in place beyond the current October deadline.
In a letter to Work and Pensions Secretary Therese Coffey, they call for the policy to be made permanent and describe the change – which is due to come into effect in October – as “the biggest overnight reduction to a basic rate of social security since the modern welfare state began, more than 70 years ago”.
The ministers also raised concerns about the impact the reduction would have on poverty.
Some Conservative MPs have called on Boris Johnson to make the temporary £20 Universal Credit uplift permanent
It comes as Prime Minister Boris Johnson is facing mounting pressure over the matter, with some members of his own Conservative backbenches calling for the government to reverse plans to cut Universal Credit payments
The government brought in a £20-per-week uplift as a response to the COVID-19 pandemic but it is due to be removed on 6 October.
The exact date the money stops being paid to an individual will vary depending on the day they usually receive Universal Credit, so for some people this will mean the last payment at the higher rate will be at the end of September.
Writing a letter last week, Tory MPs Peter Aldous and John Stevenson said the increase should be made permanent “so that low-income families continue to be able to make ends meet”.
The pair said they have “very serious concerns” about the removal of the top-up and urged ministers to listen to the “widespread warnings that are coming from all quarters” on the impact the cut could have on low income families.
They also said the move would go against the prime minister’s levelling-up agenda.
In the second letter addressed to ministers on the matter in one week, ministers from Holyrood, Cardiff and Stormont criticised the UK government’s plans to axe the uplift “at a time when they need financial support the most”.
The ministers are urging Therese Coffey not to axe the top-up in October
The joint letter, from Scotland’s Social Justice Secretary Shona Robison, Welsh Social Justice Minister Jane Hutt and Northern Ireland’s Communities Minister Deirdre Hargey said people will lose more than £1,000 a year if the top-up is scrapped.
In it, the ministers expressed the “grave concerns of all three devolved administrations”.
“Failing to maintain the recent uplift to Universal Credit will increase hardship and poverty for people who are already struggling,” the letter states.
“To support the social and economic recovery, particularly as we ease out of the public health emergency, we urge you to reverse this decision and to strengthen the support offered by Universal Credit, instead of weakening it.”
The Scottish Government has already voiced concerns that ending the £20 increase could reduce social security payments north of the border by more than £460 million per year by 2023-24.
And Ms Coffey is told claimants in Northern Ireland would lose £55.5 million in this financial year alone while 280,940 people on Universal Credit in Wales will be worse off.
Charity the Joseph Rowntree Foundation (JRF) warn against withdrawing the uplift which would see the ‘biggest overnight cut to the basic rate of social security since the Second World War’
It comes as charity the Joseph Rowntree Foundation (JRF) warned against withdrawing the uplift which would see the “biggest overnight cut to the basic rate of social security since the Second World War”.
According to the JRF, most 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.
And Citizens Advice have warned that a third of people on Universal Credit – over two million people – will end up in debt when the extra payment is removed.
Asked about the initial letter from two Conservative MPs last Thursday, the prime minister said: “The key focus for this government is on making sure that we come out of COVID strongly with a jobs-led recovery.
“And I’m very pleased to see the way the unemployment numbers, the unemployment rate has been falling, employment has been rising, but also wages have been rising. That’s the crucial thing.”
Fellow Conservative Andrew Bridgen has also joined the campaign to keep the uplift in place beyond October.
In a post on social media on Thursday, he said: “Research released today by the Joseph Rowntree Foundation reveals that 32% of working age families with children in North West Leicestershire have benefited from the £20 Universal Credit uplift that was introduced at the start of the COVID-19 pandemic.
In July, Chancellor Rishi Sunak confirmed the increase would be scrapped as it was ‘always intended to be a temporary measure’
“It has become part of people’s family budgeting in that time and I think it’s still needed. The economy is moving forward but the longer that uplift is in place now it is morally and politically impossible to remove it.
“The sooner the government come to that conclusion and remove the fear of its removal from the poorest households the better for all concerned.”
But last month, Chancellor Rishi Sunak confirmed the increase would be scrapped as it was “always intended to be a temporary measure”.
The number of people receiving the benefit has doubled during the pandemic, increasing its cost significantly.
The JRF says the policy change will have “deep and far-reaching consequences on families with children across Britain”.
Labour has said it would keep the uplift in place if it was in power and has pledged to eventually replace Universal Credit with a “fairer” system.
A UK 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.”
A group of Democratic senators has reportedly sent a letter to leadership at the US Department of Justice and the Treasury Department expressing concerns about US President Donald Trump’s ties to cryptocurrency exchange Binance and potential conflicts of interest in regulating the industry.
According to a May 9 Bloomberg report, Democratic senators asked Attorney General Pam Bondi and Treasury Secretary Scott Bessent to report on the steps Binance had taken as part of its November 2023 plea agreement with US authorities, amid reports that Trump and his family had deepened connections with the exchange.
That settlement saw Binance pay more than $4 billion as part of a deal with the Justice Department, Treasury, and Commodity Futures Trading Commission, and had then-CEO Changpeng “CZ” Zhao step down.
However, since Trump won the presidency in 2024, many lawmakers have accused the president of corruption from profiting off crypto while being in a position to influence laws and regulations over the industry.
Trump has launched his own memecoin — which earns the project millions of dollars in transaction fees — and offered the top tokenholders the opportunity to attend an exclusive dinner in Washington, DC. His family-backed crypto venture World Liberty Financial also recently announced that an Abu Dhabi-based investment firm, MGX, would settle a $2 billion investment in Binance using the platform’s USD1 stablecoin.
“Our concerns about Binance’s compliance obligations are even more pressing given recent reports that the company is using the Trump family’s stablecoin to partner with foreign investment companies,” the senators said in the letter, according to Bloomberg.
Related: Trump tricked into pushing XRP for crypto reserve: Report
Stablecoin bill fails to pass the US Senate
The letter came less than 24 hours after some of the same senators blocked a crucial vote on a bill to regulate stablecoins, named the GENIUS Act. Senator Elizabeth Warren, who reportedly signed the letter and opposed moving forward on the stablecoin bill, suggested the Senate should not be aligned with “facilitat[ing] this kind of corruption” from Trump.
Bessent said the Senate “missed an opportunity” by not passing the stablecoin bill, but did not directly address any of the concerns over Trump’s crypto interests. It’s unclear if or when the chamber could consider another vote on the bill.
In an April 23 report, the nonpartisan organization State Democracy Defenders Action said roughly 40% of Trump’s net worth was tied to crypto. The group noted that the GENIUS Act, in its current version, “would not prevent President Trump from using his executive powers to establish a regulatory environment and enforcement agenda that prioritizes his personal enrichment over the broader interests of US stakeholders.”
Amid the concerns with the stablecoin and proposed market structure bills, Zhao reportedly applied for a federal pardon from Trump. Though the former CEO already served four months in prison, a pardon for his felony charge could allow him to get more involved with the crypto industry through a management position.
Magazine: Trump’s crypto ventures raise conflict of interest, insider trading questions
Politics
Chancellor insists Labour rebels ‘know the welfare system needs reform’ as they push for change
Taiwanese lawmaker Ko Ju-Chun has called on the government to consider adding Bitcoin to its national reserves, suggesting it could serve as a hedge against global economic uncertainty.
Ko, a legislator at-large in Taiwan’s legislative body, the Legislative Yuan, took to X on Friday to report that he had advocated Bitcoin (BTC) investment by the Taiwanese government at the National Conference on May 9.
In his remarks, Ko cited Bitcoin’s potential to become a hedge amid global economic risks and urged Taiwan to recognize the cryptocurrency alongside gold and foreign exchange reserves to boost its financial resilience.
Ko’s announcement came shortly after the legislator held talks with Samson Mow, who advocates for Bitcoin adoption by states like El Salvador at his BTC tech firm Jan3.
Taiwan is an export-oriented economy
Ko highlighted that Taiwan is an export-driven economy that has experienced significant fluctuations in its national currency, the New Taiwan dollar, amid global inflation and intensifying geopolitical risks.
“We currently have a gold reserve of 423 metric tons, and our foreign exchange reserves amount to $577 billion, including investments in US Treasury bonds,” the lawmaker stated.
In a scenario of more intense currency volatility or potential regional conflicts, Taiwan may “very likely be unable to ensure the security and liquidity,” Ko continued, adding that Bitcoin could be a great addition to Taiwan’s reserves for several reasons.
“Bitcoin has been operating for over 15 years. It has a fixed total supply, is decentralized, and is resistant to censorship. Many countries are focusing on its hedging attributes. At the same time, in intense situations, it may not face the risk of embargo,” he said.
Bitcoin is not the only solution
Referring to many global initiatives considering Bitcoin adoption as a reserve asset, Ko stressed that he’s not advocating for Bitcoin as the “only solution” to rising economic challenges.
Instead, the legislator suggested adding a “small proportion of Bitcoin” into the diversified assets as tools for sovereign asset allocation and risk hedging, and backup capacity of Taiwan’s financial system.
Related: Trump tricked into pushing XRP for crypto reserve: Report
He previously suggested that Taiwan could allocate a maximum of 5% of its $50 billion reserve to Bitcoin in an X post on May 6.
“When exchange rate risk and regional uncertainty increase, it is time to introduce new tools to construct a more flexible financial strategy framework,” Ko said, adding:
“As former Dean Chen Chong said, Bitcoin is the gun of the digital era. It may also be the gold of the digital era, the silver of the digital era. Or it could be gunpowder. A wise nation will not let weapons be in others’ hands.”
The news comes as Taiwan is emerging as a crypto-friendly jurisdiction, with the Financial Supervisory Commission pushing institutional trials of crypto custody services in late 2024.
Mainland China continues to maintain its hostile stance on cryptocurrency after imposing a ban on multiple crypto activities, including mining, in 2021.
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