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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.

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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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Harriet Harman calls for ‘mini inquiry’ into race issues raised by grooming gangs scandal

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Harriet Harman calls for 'mini inquiry' into race issues raised by grooming gangs scandal

Harriet Harman has suggested a “mini inquiry” into issues raised by the grooming gangs scandal and called on Sir Keir Starmer and Kemi Badenoch to discuss “terms of reference”.

The Labour peer told Sky’s political editor Beth Rigby on the Electoral Dysfunction podcast that there should “openness” to a future probe as long it does not repeat the previous investigations.

In particular, she said people need to be “trained and confident” that they can take on matters “which are in particular communities” without being accused of being racist.

“I think that whether it’s a task force, whether it’s more action plans, whether it’s a a mini inquiry on this, this is something that we need to develop resilience in,” Ms Harman said.

The grooming gangs scandal is back in the spotlight after Elon Musk hit out at the Labour government for rejecting a new national inquiry into child sexual exploitation in Oldham, saying this should be done at a local level instead.

The Tories also previously said an Oldham inquiry should be done locally and in 2015 commissioned a seven-year national inquiry into child sex abuse, led by Professor Alexis Jay, which looked at grooming gangs.

However, they didn’t implement any of its recommendations while in office – and Sir Keir has vowed to do so instead of launching a fresh investigation into the subject.

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Ms Harman said she agreed with ministers that there is “no point” in a rerun of the £200m Jay Review, which came on top of a number of locally-led inquiries.

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Grooming gangs: What happened?

However, she said there’s “always got to be an openness to further analysis, further consideration of what proposals would move things forward”.

She called on the Conservative Party to start “sensibly discussing with the government what should be the parameters of a future inquiry”, as they “can’t really be arguing they want an absolute repeat of the seven years and £200 million of the Jay inquiry”.

She said the Tories should set out their “terms of reference”, so “the government and everybody can discuss whether or not they’ve already got that sorted”.

Girls as young as 11 were groomed and raped across a number of towns in England – including Oldham, Rochdale, Rotherham and Telford – over a decade ago in a national scandal that was exposed in 2013.

In many cases the victims were white and the perpetrators of south Asian descent – with the local inquiry into Telford finding that exploitation was ignored because of unease about race.

The Jay review did not assess whether ethnicity was a factor in grooming gangs due to poor data, and recommended the compilation of a national core data base on child sex abuse which records the ethnicity of the victim and alleged perpetrator.

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PM: People ‘spreading lies’ are ‘not interested in victims’

Ms Harman’s comments come after the Labour Metro Mayor of Greater Manchester, Andy Burnham, said he believed there was a case for a new “limited national inquiry”.

He told the BBC that a defeated Tory vote on the matter was “opportunism”, but a new probe could “compel people to give evidence who then may have charges to answer and be held to account”.

Jess Phillips, the safeguarding minister who has born the brunt of Mr Musk’s attacks, has told Sky News “nothing is off the table” when it comes to a new inquiry – but she will “listen to victims” and not the world’s richest man.

Sir Keir has said he spoke to victims this week and they do not want another inquiry as it would delay the implementations of the Jay review – though his spokesman later indicated one could take place if those affected call for it.

Tory leader Ms Badenoch has argued that the public will start to “worry about a cover-up” if the prime minister resists calls for a national inquiry, and said no one has yet “joined up the dots” on grooming.

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Pro-crypto CFTC boss, subcommittee rumored as Trump inauguration nears

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Pro-crypto CFTC boss, subcommittee rumored as Trump inauguration nears

New reports suggest the US Senate Banking Committee is looking to create its first crypto subcommittee, while Trump is reportedly eyeing a pro-crypto CFTC Commissioner to take the agency’s helm.

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UK order clarifies crypto staking is not a collective investment scheme

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UK order clarifies crypto staking is not a collective investment scheme

The UK Treasury has amended finance laws to clarify that crypto staking isn’t a collective investment scheme, which a lawyer says is “heavily regulated.”

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