Labour councillors have expressed their disappointment at Powys County Council for not putting pressure on the UK Government to stop the so-called Universal Credit cut this month.
Described as “cruel” by Cllr Liz Rijnenberg of Brecon St Mary ward and “shameful” by Powys Labour Leader Cllr Matthew Dorrance, the withdrawal of the Universal Credit boost across the UK - which was introduced during early 2020 to help those affected by the pandemic - will see claimants lose £20 a week.
Welsh Labour had put a motion to Powys council, which was discussed last Thursday, September 23, asking it to oppose the planned reduction in Universal Credit.
The motion called on Powys County Council to write to the Chancellor of the Exchequer Rishi Sunak, the Work and Pensions Secretary Therese Coffey and Prime Minister Boris Johnson to oppose the planned cut to Universal Credit but many Conservative and Independent councillors blocked the plan.
Cllr Rijnenberg of Brecon St Mary ward, who described the so-called universal credit cut as “cruel”, slammed the withdrawal of the temporary universal credit boost as “both morally indefensible and economically unsound”.
She said: “The Universal Credit cut is cruel. It will push families in Powys into poverty and debt.
“I am disappointed that many Conservative and Independent Councillors in Powys failed to recognise that especially now of all times with the squeeze on everyone’s pockets coming from all directions, going ahead with this cut will cause extra hardship.
“The cut is both morally indefensible and economically unsound. The Joseph Rowntree Foundation has stated that not only will individuals be hit hard but local communities will feel the pinch too.
New analysis from social justice think tank The Bevan Foundation shows the staggering cost of the Universal Credit reduction to Powys families and the economy.
The withdrawal of the temporary increase will see more than 8,000 recipients of Universal Credit in Powys lose £1,040 a year as well as costing the Powys economy £9.6 million - £4.5 million of which will come from Brecon and Radnorshire.
The analysis comes as Powys County Council debated Welsh Labour’s motion last Thursday, September 23, which was voted down by the independent and Conservative run council.
Cllr Rijnenberg said: “We know families on Universal Credit including many people in work spend more of their income on food, clothing, and essentials. The £20 is not disposable income to go on holiday it is about keeping afloat and retaining some dignity.
“Taking more than £1,000 out of the pockets of families in Powys will have a knock-on effect that will be detrimental to the local economy and increase demand on already overstretched services.”
However leader of the Welsh Conservatives at Powys council Aled Davies hit back at the Welsh Labour councillors who he described as being only interested in “grandstanding and political point scoring”.
Cllr Davies also reminded Powys at the meeting that the uplift was only ever described as a “temporary increase” intended to support households facing “economic shock”.
He said: “The £20 uplift to Universal Credit was introduced to support households facing economic shock and financial disruption as a result of the pandemic. More than eight thousand families in Powys received an additional £1,000 a year.
“The Chancellor and the Government were extremely clear to MPs and the public that the £20 per week uplift was temporary and a pandemic response, just as furlough, grants and the Self Employed Support Scheme were.
“The Government kept the uplift as the economy began to get back on its feet. It is hard to argue that we should take support away from those in employment, while maintaining this pandemic measure also.
“We are in a much more positive position since the pandemic and restrictions have ended. Job vacancies are currently above pre-pandemic levels, at a record high of 1 million active vacancies in our labour market. With thousands entering employment every week. This is a promising sign that the economy is recovering, and quickly.”
Cllr Davies argued that while it is important to note that Universal Credit provides a “safety net”, he said it is not designed to “trap people on welfare”.
The Conservative further said that the UK Government “recognises” that the “best route to prosperity” is by working.
Cllr Davies said: “The UK Government recognise that work is the best route into prosperity and it is therefore right that the Government should now shift their focus to supporting people back into work. That is exactly why the Plan For Jobs has been set out by the Chancellor and aims to achieve.”
“Fundamentally this is not a cut, and to imply that a temporary increase, that was always announced as a temporary increase is a cut is ludicrous.
“It is this kind of quick rhetoric that turns people off politics. To put the calls of setting the uplift permanently, it would cost the taxpayer an additional £6 billion to maintain the uplift.”
In place of Welsh Labour’s motion, Powys Council passed an amendment from Cllr Davies - whereby council resolved to work in partnership with advice agencies to support residents impacted by the removal of the temporary increase in Universal Credit.
Cllr Davies said: “Powys County Council have demonstrated during the pandemic, that we are committed to supporting the poorest, lowest paid and most vulnerable in our society and to ensure that people have the support that they need.
“The expected rise in unemployment that was predicted by so many has not materialised, Pay-rolled workers are up by nearly one million since the start of the year and there are encouraging signs that the country is moving in the right direction.
“Opposition groups within Powys CC are only interested in grandstanding and political point scoring. What motivates myself and our Welsh Conservative group is how we can practically make a difference and support all residents in Powys, our Money Advice officers working within Powys is a great example of that.”
Figures were also previously released by the Wales co-coordinating body of trade unions, Wales TUC, which show more than 8,000 families in Powys will lost more than £1,000 a year.
Wales TUC has 48 member unions and it represents around 400,000 workers wile campaigning for fairer work and social justice.
In July, Wales TUC reported that new analysis showed that the Universal Credit - which is a lifeline for many households both working and unemployed - cut would affect 280,000 people across Wales.
From its analysis, it further reported that 104,000 of those people - 37 per cent - who will be impacted in Wales are people who are working.
Wales TUC, which also reported that Working Tax Credit is also being cut having only been raised by £20 per week in early 2020, said that some of the worst hit will by low-paid key workers.
Based on its July research, Wales TUC said: “60,000 children in key worker households are currently growing up in poverty - with many currently receiving in-work benefits like Universal Credit.”
Powys Welsh Labour leader Cllr Matthew Dorrance of Brecon St John ward, who has joined politicians across the UK in voicing his anger at the cut, said: “Thousands of families in Powys will lose more than £1,000 because of the cut to Universal Credit. Many of those affected are the key workers who have supported us and kept us safe through the coronavirus pandemic.
“Earlier this month the Child Poverty Action Group told the Council that between April 2020 and March 2021 there was a 197% increase in the number of three-day emergency food parcels given to children in Powys so there can be no doubt that cutting Universal Credit will hurt families in Powys, push more children into poverty and damage our local economy.
“It is shameful that those Conservative Councillors and Independent Councillors who supported the cut which will be a devastating blow to families in Powys put Boris Johnson’s interests before the people and families they represent.”