“Whatever it is, it’s not making it back better.”
Downing Street is ending the Universal Credit uplift on Wednesday in “the biggest overnight cut for profit in history,” according to an independent think tank chief.
The government is withdrawing an additional £20-a-week paid on Universal Credit during the pandemic to encourage people to work.
Torsten Bell, chief executive of the Resolution Foundation and a former adviser to former Labor leader Ed Miliband, explained why this £20 weekly has been a lifeline for some.
On Tuesday, he tweeted: “Tomorrow, 4.4 million households will have 5.1 million adults and 3.5 million children, with their income dropping by £1,000 a night.
“For one million households this would mean an immediate loss of more than 10% of their income as we take the basic rate of profit to its lowest level since 1990.”
Then he added: “Whatever it is, it better not be coming back.
“I didn’t think the government would go ahead with the biggest overnight cut for profit in history. I was wrong.”
The cut comes amid a hike in petrol prices due to a fuel crisis, rising energy prices and predictions of major shortages around Christmas.
Chancellor Rishi Sunak has been bogged down by controversial cuts, and told BBC Radio 4 he is not “dogmatic” in insisting on promoting a £20-a-week pandemic.
He said: “We put a lot of things in place during the acute phase of the coronavirus that were necessarily temporary – things that are appropriate when you’re expecting a once in a century pandemic, and it’s fair that they Things will end naturally.
“Whether it’s universal credit or actually furloughs, these things are coming to their end, but we haven’t backed people.
“I don’t think anyone can accuse me or the government of being dogmatic or not wanting to support the people, given the support we’ve given over the past year and a half, that’s the best way we have.”