Sunak told to reinstate Universal Credit uplift after writing off Covid-19 fraud cash

[rebbonk]

I wonder how much went to Tory party donors?

Struggling households should be given more help by the Chancellor after writing off more than £4 billion of public cash stolen by Covid fraudsters, MPs claim.

The UK Treasury expects to recover only £1 of every £4 stolen from the public purse by fraudsters during the pandemic.

Aberdeen South MP Stephen Flynn accused the Chancellor of being “happy to let fraudsters off the hook”.

But he also claimed the Tory minister had already “picked the pockets of hard pressed households” by slashing welfare.

Billions written off

The department has written off £4.3bn of £5.8bn that was stolen from its emergency Covid-19 schemes including the furlough scheme, the self-employed income support programme and Eat Out to Help Out.

The figures which were first unearthed by The Times, show while the Treasury spent a total of £81.2bn on the schemes, it believes £5.8bn has been stolen by workers and businesses claiming money they were not entitled to.

Mr Flynn, who is the SNP’s business spokesman, has called on the Chancellor to put the £20 a month Universal Credit uplift back in place to help struggling families.

The extra £20 per week, which was introduced during the pandemic, ended at the beginning of October.

The SNP MP said: “If the Chancellor can turn a blind eye to £4.3bn then surely he can reinstate Universal Credit to its previous level and make a real difference to more than 15,000 households across Aberdeen who are suffering from the Tory-made cost of living crisis we are currently witnessing.

“The Tories have been caught dishing out dodgy Covid contracts to friends and family, their VIP lane has been found to be unlawful, and now they are writing off £4.3bn whilst hammering the poorest in society – the public deserve so much better.”

Meanwhile, West Fife SNP MP Douglas Chapman accused the prime minister of betraying a commitment to claw back stolen taxpayers’ cash.

Boris Johnson said last month action would be taken against “anybody who’s defrauded any of the Covid loans, bounce back loans or otherwise”.

In response to £4.3bn being written off, Mr Chapman said: “I cannot understand how a government that will pursue every penny from families who’ve received a tiny benefits overpayment could abandon all hopes of recovering so much money lost to criminals.

“I will be seeking to raise this with the prime minister to ensure every effort is made to get this missing £4.3bn back.”

The Chancellor faced accusations of “going missing” as he did not appear in the Commons on Tuesday to answer questions about the cash which reportedly went to “fraudsters”.

Treasury Minister John John Glen told MPs the government “has taken the issue of potential fraud relating to Covid grant schemes extremely seriously”.

He added: “Robust measures were put in place to control error and fraud in the key Covid support schemes from their inception.”

‘Providing extensive support’

A UK Government spokesman said: “We’re providing extensive support to those on the lowest incomes, including putting an average of £1,000 more per year into the pockets of working families on Universal Credit, increasing the minimum wage and helping with the cost of fuel bills.

“Meanwhile, Scotland has been allocated an additional £41 million in line with the Household Support Fund helping vulnerable families across the country with essential costs, and the Scottish Parliament has significant welfare powers and can top up existing benefits, pay discretionary payments and create entirely new benefits in areas of devolved responsibility.”

Source: https://www.pressandjournal.co.uk/fp/politics/uk-politics/3858261/rishi-sunak-told-to-reinstate-universal-credit-uplift-after-writing-off-covid-19-fraud-cash/

[dutchman]

I don't see why only one group of claimants should be given extra money when many others have faced the same rise in living costs as they have? The so-called 'uplift' was in effect a cut for everyone not on Universal Credit.

[dutchman]

Campaigners lose High Court challenge over benefits uplift



Campaigners have lost a High Court bid challenging the government over the decision not to extend the universal credit uplift to those on “legacy” benefits during the pandemic.

The judgement, described as a “colossal blow” to over 2 million people, centred on the increase in payments to universal credit claimants between March 2020 and October 2021.

It provided recipients with a £20-per-week top-up on their benefits during the Covid crisis, but was phased out in the autumn by the government, despite protests from campaigners and MPs.

Bringing the case, campaigners suggested the decision not to extend the uplift to those on older benefits – referred to as “legacy benefits” – such as Employment Support Allowance (ESA) and Job Seeker’s Allowance (JSA), disproportionately affected disabled people.

Lawyers acting on behalf of four disabled people, who brought the claim against the Department for Work and Pensions, argued at a November hearing that the difference in treatment was incompatible with their human rights.

But in a ruling on Friday, Mr Justice Swift said that while there was indirect discrimination cause by the difference in treatment, the decision by Therese Coffey, the work and pensions secretary, was lawful nonetheless.

“My conclusion is that the difference in treatment of universal credit claimants over those claiming legacy benefits resulting from the 2020 Regulations was justified,” he said.

“The decision to increase the universal credit standard allowance was one of a series of decisions made at the beginning of the pandemic.”

The judge added: “The central question raised by the claimants’ discrimination claims is whether it was lawful for the secretary of state to direct her attention to the position of new benefits claimants – all of whom would have made claims for universal credit.

“I consider that she was. New benefits claimants would need to adjust to a loss in income. They would be affected differently to persons already claiming benefits.”

The claimants, who were supported by a number of disability rights’ groups and charities, are considering whether to appeal against the ruling.

Their solicitor William Ford, of Osbornes Law, said: “We are extremely disappointed by today’s judgment and will study it carefully to assess whether there are any grounds to appeal.

“The court’s decision is a devastating blow to more than two million people who we consider were unjustly deprived of the £20 uplift given to those who receive Universal Credit during the pandemic.

Responding to the judgement, Anastasia Berry, policy co-chair of the Disability Benefits Consortium and policy manager at the MS society, said: “After months of stalling, we’re devastated by the High Court’s ruling today, which fails to hold the government to account for its shameful treatment of disabled people, including those with MS.

“While the government has found a legal technicality to duck responsibility, the basic fact remains that it stood idly by while many disabled people were forced deeper into poverty during the pandemic.

“This ruling will come as a colossal blow to the 2.2 million people on legacy benefits, such as Job Seeker’s Allowance and Employment Support Allowance, who were cruelly denied the emergency funding which was offered to others without any justification. But we refuse to give up the fight.”