For immediate release:
THIRD OF A MILLION CLAWED BACK BY DWP ‘POVERTY TAX’
Households across the Rutherglen and Hamilton West constituency in receipt of Universal Credit are losing £333,000 every month due to UK government claw backs.
Over half of all households in the constituency claiming the benefit are being seeing their payments deducted. Many recipients take out upfront loans from the DWP when waiting five weeks for their first Universal Credit payment – and this money is then reclaimed by the UK government.
As first reported in our sister paper the Daily Record, the UK Government deducted £12.6 million a month from 209,400 Scottish households between March and May.
Rutherglen and Hamilton West is the fourth worst impacted constituency in the whole of Scotland – with around 5,600 claimants losing an average of £60.
SNP MP Chris Stephens uncovered the data.
His party colleague, and Rutherglen MSP Clare Haughey, has branded the Universal Credit deductions a ‘poverty tax’.
Commenting, Ms Haughey said:
“The UK Government’s Universal Credit benefit system is not fit for purpose – it is uncaring and wrongheaded, and anyone who speaks to those struggling in our communities understands that.
“These deductions are essentially a poverty tax on people who are fighting to heat their homes and put food on the table.
“Turning the advance payments into non-repayable grants instead of keeping them as loans once people have been determined as eligible for Universal Credit would help people across Rutherglen and Cambuslang who are impacted by these harsh clawbacks.
“Whether it’s the broken Universal Credit system, punitive benefit sanctions, or the abhorrent two-child benefit cap, it is clear that Westminster isn’t interested in tackling poverty.
“In contrast, the Scottish Government is putting money into people’s pockets, lifting them out of poverty through game-changing policies like the Scottish Child Payment.”
ENDS