Universal Credit could be scrapped and everyone given £163 a week instead under new proposals

A radical new plan could see Universal Credit scrapped in favour of a set weekly payment to all adults.

The plan has been proposed by the Commission on Social Security group –  an organisation that looks at radical reform of the benefit system – as a ‘streamlined’ way of keeping millions of people and families out of poverty.

From April, the minimum Universal Credit rate will be around £75 a week for over-twenty-fives, with top-ups available for those with housing needs, children and disabilities.

But the Commission, whose leaders say they have ‘lived experiences of the benefits system’, have been pushing for Universal Credit to be scrapped and replaced by their own proposed payment system.

@pickawood / Unsplash

This system would include a ‘Guaranteed Decent Income’ of £163.50 a week for all adults, including multiple adults in the same household.

This would be not unlike a Universal Basic Income, but instead of being paid to all adults regardless of income, it would target those whose earnings are below the £163.50 threshold or those who don’t earn anything at all.

Read More: Gary Neville applauded as he calls out government’s ‘dangerous’ Universal Credit cut on GMB

The proposed system would also see Child Benefit set at £50 a week – more than double the £21.15 for the eldest child now – and Personal Independence Payment for the disabled to range from £83.70 to £230.77.

Dr. Orton, from the Institute for Employment Research at Warwick University, said on the proposed system: “The pandemic showed that when times were tough it was unpaid carers, supermarket workers and others on low incomes who kept our society going.

“It also showed that if we choose to, we can provide social security for everyone.

“However, the recent cut to Universal Credit means the government is headed in the wrong direction. With a cost of living crisis looming in 2022, it doesn’t have to be like this.”

Back in October, the government scrapped the £20-a-week uplift in universal credit, which was a substantial part of their emergency Covid support package. 

Axing the uplift impacted the incomes of 6 million claimants, all of whom lost an average of £1,040 a year, adding only more pressure as the cost of living continues to rise.