London Daily

Focus on the big picture.
Sunday, Oct 19, 2025

Universal credit cut will push 800,000 people into poverty, Boris Johnson warned

Universal credit cut will push 800,000 people into poverty, Boris Johnson warned

Senior Tories plot to force government U-turn
Boris Johnson is warned today that more than 800,000 people risk being plunged into poverty as a result of an imminent cut to universal credit, amid a plot by senior Tories to force the government into a last-minute U-turn.

With Conservatives from across the party pressing for a compromise deal this weekend as ministers face a potential Commons revolt, the Observer has seen new analysis that suggests the impact of the £20-a-week cut could be severe with energy costs and food prices rising.

It finds that the extra support protected some 840,000 people from poverty in the second quarter of this year. The research from the Legatum Institute thinktank includes 290,000 children – a figure that is causing particular concerns among Tories, who fear a significant increase in child poverty after the cut. The figure includes extra universal credit help given to the self-employed.

With Conservatives warning that the cut will immediately undermine Johnson’s pledge to “level up” the country – a claim repeated after his reshuffle last week – some 320,000 of the people in the group were in a full-time working family before the pandemic, with a further 300,000 in a family working a mixture of full-time and part-time.

Former Tory leader Iain Duncan Smith, the architect of universal credit, is attempting to spearhead a Commons coup on Monday by forcing a vote on the cut. The vote could embarrass the government should it go ahead, with another former welfare minister, Damian Green, also backing a cross-party amendment.

Duncan Smith said that the Treasury risked repeating the mistakes of austerity by trying to bring down pandemic spending too quickly. “Universal credit levels-up because it gets people back into work, back into the sense of work,” he said. “We’ve got ourselves caught, with the Treasury now demanding that we start getting the money back from Covid. We should treat this like war debt. We can’t go back into a massive cutting exercise. Ultimately, that will affect the worst-off in society.”

Tory peer Philippa Stroud, the Legatum Institute’s chief executive, who helped construct universal credit as an adviser to Duncan Smith, said that it was important for MPs to be “in possession of the full facts” as they considered the reduction. “Instead of withdrawing universal credit at this perilous time, we should be focusing our collective attention on ways to unlock prosperity across all of our regions and communities,” she said.

Ministers are among those hoping that the Treasury will use next month’s budget to unveil a compromise deal that would see those in work and on universal credit allowed to earn more before their benefits begin to be reduced. So far, Rishi Sunak has been adamant that there will be no rethink over the decision to end the £20-a-week increase at the end of the month.

Andy Street, the Tory West Midlands mayor, is among those attempting to secure concessions. “The government has provided unprecedented levels of support throughout the pandemic, but now as we move into the recovery phase there are some incredibly difficult decisions to be made – including around the universal credit uplift,” he said. “I do have concerns about the impact the removal of this uplift would have in the West Midlands, and I am keen to work with the government to see if other benefit levels could be amended to help mitigate the impact on the worst affected.”

Another former Tory welfare secretary, David Gauke, said that with inflation increasing, there was still time for a compromise. “The Treasury is right to be concerned about the long-term outlook for the public finances but the complete and overnight withdrawal of the uplift will be very painful for millions of households, especially at a time of rising prices,” he said. “The uplift itself is a fairly crude policy, but there is a very strong case for redeploying the uplift money into higher work allowances (even if then frozen) or a lower taper rate [the rate at which the benefit is removed as a claimant’s working hours increase].”

While the vote on Monday will not bind the government, it could illustrate the level of concern among the Tory ranks. Stephen McPartland, the Conservative MP for Stevenage, said: “It is not too late for the prime minister to step in and show his authority by supporting millions of people facing this cut of over £1,000 a year. Energy bills are going through the roof, new taxes on working people and incomes being squeezed – £20 a week may not sound like much, but to those on low incomes, trying to do the right thing, it often makes all the difference.”

A government spokesperson said the £20 universal credit uplift had always been a temporary measure. “It was designed to help claimants through the economic shock and financial disruption of the toughest stages of the pandemic, and it has done so,” they said. “Universal credit will continue to provide vital support for those both in and out of work and it’s right that the government should focus on our plan for jobs, supporting people back into work and supporting those already employed to progress and earn more.”
Newsletter

Related Articles

0:00
0:00
Close
S&P Downgrades France’s Credit Rating, Citing Soaring Debt and Political Instability
Ofcom Rules BBC’s Gaza Documentary ‘Materially Misleading’ Over Narrator’s Hamas Ties
Diane Keaton’s Cause of Death Revealed as Pneumonia, Family Confirms
Former Lostprophets Frontman Ian Watkins Stabbed to Death in British Prison
"The Tsunami Is Coming, and It’s Massive": The World’s Richest Man Unveils a New AI Vision
Outsider, Heroine, Trailblazer: Diane Keaton Was Always a Little Strange — and Forever One of a Kind
Dramatic Development in the Death of 'Mango' Founder: Billionaire's Son Suspected of Murder
Two Years of Darkness: The Harrowing Testimonies of Israeli Hostages Emerging From Gaza Captivity
EU Moves to Use Frozen Russian Assets to Buy U.S. Weapons for Ukraine
Europe Emerges as the Biggest Casualty in U.S.-China Rare Earth Rivalry
HSBC Confronts Strategic Crossroads as NAB Seeks Only Retail Arm in Australia Exit
U.S. Chamber Sues Trump Over $100,000 H-1B Visa Fee
Shenzhen Expo Spotlights China’s Quantum Step in Semiconductor Self-Reliance
China Accelerates to the Forefront in Global Nuclear Fusion Race
Yachts, Private Jets, and a Picasso Painting: Exposed as 'One of the Largest Frauds in History'
Australia’s Wedgetail Spies Aid NATO Response as Russian MiGs Breach Estonian Airspace
McGowan Urges Chalmers to Cut Spending Over Tax Hike to Close $20 Billion Budget Gap
Victoria Orders Review of Transgender Prison Placement Amid Safety Concerns for Female Inmates
U.S. Treasury Mobilises New $20 Billion Debt Facility to Stabilise Argentina
French Business Leaders Decry Budget as Macron’s Pro-Enterprise Promise Undermined
Trump Claims Modi Pledged India Would End Russian Oil Imports Amid U.S. Tariff Pressure
Surging AI Startup Valuations Fuel Bubble Concerns Among Top Investors
Australian Punter Archie Wilson Tears Up During Nebraska Press Conference, Sparking Conversation on Male Vulnerability
Australia Confirms U.S. Access to Upgraded Submarine Shipyard Under AUKUS Deal
“Firepower” Promised for Ukraine as NATO Ministers Meet — But U.S. Tomahawks Remain Undecided
Brands Confront New Dilemma as Extremists Adopt Fashion Labels
The Sydney Sweeney and Jeans Storm: “The Outcome Surpassed Our Wildest Dreams”
Erika Kirk Delivers Moving Tribute at White House as Trump Awards Charlie Presidential Medal of Freedom
British Food Influencer ‘Big John’ Detained in Australia After Visa Dispute
ScamBodia: The Chinese Fraud Empire Shielded by Cambodia’s Ruling Elite
French PM Suspends Macron’s Pension Reform Until After 2027 in Bid to Stabilize Government
Orange, Bouygues and Free Make €17 Billion Bid for Drahi’s Altice France Telecom Assets
Dutch Government Seizes Chipmaker After U.S. Presses for Removal of Chinese CEO
Bessent Accuses China of Dragging Down Global Economy Amid New Trade Curbs
U.S. Revokes Visas of Foreign Nationals Who ‘Celebrated’ Charlie Kirk’s Assassination
AI and Cybersecurity at Forefront as GITEX Global 2025 Kicks Off in Dubai
DJI Loses Appeal to Remove Pentagon’s ‘Chinese Military Company’ Label
EU Deploys New Biometric Entry/Exit System: What Non-EU Travelers Must Know
Australian Prime Minister’s Private Number Exposed Through AI Contact Scraper
Ex-Microsoft Engineer Confirms Famous Windows XP Key Was Leaked Corporate License, Not a Hack
China’s lesson for the US: it takes more than chips to win the AI race
Australia Faces Demographic Risk as Fertility Falls to Record Low
California County Reinstates Mask Mandate in Health Facilities as Respiratory Illness Risk Rises
Israel and Hamas Agree to First Phase of Trump-Brokered Gaza Truce, Hostages to Be Freed
French Political Turmoil Elevates Marine Le Pen as Rassemblement National Poised for Power
China Unveils Sweeping Rare Earth Export Controls to Shield ‘National Security’
The Davos Set in Decline: Why the World Economic Forum’s Power Must Be Challenged
France: Less Than a Month After His Appointment, the New French Prime Minister Resigns
Hungarian Prime Minister Viktor Orbán stated that Hungary will not adopt the euro because the European Union is falling apart.
Sarah Mullally Becomes First Woman Appointed Archbishop of Canterbury
×