New analysis from the Medway Labour and Co-operative Group has found that over 20,000 families in Medway are set to lose out on £1,040 a year as the Government is set to cut the £20 a week increase to Universal Credit implemented last year.
From a business perspective, this means that there will be colossal £21,278,400 less in Medway’s economy per year due to this particular cut to Universal Credit alone.
The analysis comes ahead of a crunch vote forced by Labour in the House of Commons to scrap the cut and support family incomes during the pandemic.
The Labour Party continue to fight this cut on a national and local level, as Deputy Leader of the Medway Labour and Co-operative Group is set to move a motion to Thursday’s full council meeting, urging the Council to oppose this cut to local residents.
Cllr Teresa Murray, Deputy Leader of the Medway Labour and Co-operative Group and proposer of the motion, said that, ‘The Government’s decision to cut universal credit will hit over 20,000 local families who are already struggling to get by.
‘Over £1,000 (13% of total income) a year is a substantial sum to any family, and by taking this away from working families and those trying to find work, Boris Johnson’s Government are making the most vulnerable in our society foot the bill for the Conservative mismanagement of the pandemic.
‘The Government must put families first during this crisis and give them the support and security they need.’
Cllr Vince Maple, Medway Labour and Co-operative Group Leader, added, ‘Britain is facing the worst recession of any major economy because of the Government’s incompetent handling of the pandemic.
‘The Government must put families first during this lockdown and act now instead of waiting till the last minute yet again.’