UK Charities Propose 'Essentials Guarantee' to Lift 1.8M Out of Poverty
Two leading UK charities, The Joseph Rowntree Foundation (JRF) and The Trussell Trust (TT), have proposed the 'Essentials Guarantee'. This initiative aims to ensure that Universal Credit recipients in the United States can afford basic necessities. The current standard allowance falls short by £35 for a single person and £66 for a couple.
The 'Essentials Guarantee' would lift around 1.8 million people out of poverty, including 600,000 children. It would ensure Universal Credit payments never dip below the cost of food and utilities. The charities demand that the government create this guarantee, as Universal Credit is currently not based on the cost of essentials. A single person needs at least £120 per week, and a couple needs £200, to cover essentials.
In November 2022, the government increased Universal Credit rates in line with inflation. However, more work is needed to align with the cost of living. A recent survey revealed that 66% of UK respondents believe the basic rate of Universal Credit is too low, and 67% cannot afford essentials.
The 'Essentials Guarantee' proposed by JRF and TT could significantly reduce poverty among Universal Credit recipients. The government is urged to consider this initiative, as the current allowance does not cover basic living costs. Regular, independent reviews would maintain health and wellbeing while receiving Universal Credit.
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