THE Tory-run Government at Westminster has U-turned yet again, this time on their decision to end the "lifeline" suspension of the Minimum Income Floor (MIF) in Universal Credit on November 12.
In a move which the SNP have said is just “the tip of the iceberg”, Work and Pensions Secretary Therese Coffey announced that the change would now not be made until “the end of April 2021”.
The move comes after pressure from the SNP and other UK organisations including the Federation of Small Businesses (FSB) and Trades Union Congress (TUC).
Speaking over the weekend, the TUC’s general secretary, Frances O’Grady, said it was “a disastrous time to cut this [MIF] lifeline”.
READ MORE: Scots urged to apply for 'game-changing' support ahead of new benefit launch
The MIF is a policy which means people cannot claim Universal Credit for their actual earnings if those are less than they would earn working a 35-hour week on the hourly minimum wage for their age group. Instead they must claim from this “income floor”.
The Institute of Fiscal Studies estimates around 450,000 low-income households across the UK have seen their payments cut by an average of £3200 a year because of the policy.
The MIF was suspended in March to allow self-employed people to claim Universal Credit based on their actual earnings.
The SNP said this decision had been "a lifeline for many" through the Covid crisis.
Coffey said the decision not to reinstate the policy from November 12 had been made “after careful consideration of the ongoing public health situation and the national working environment”.
The SNP’s Work and Pensions spokesperson, Neil Gray, welcomed the U-turn, but said this is just “the tip of the iceberg” of what needs to done to protect jobs and livelihoods during the coronavirus crisis.
READ MORE: UK Government in 'chaos' as Tory ministers dodge Scots furlough questions
Gray called on the Tories to immediately make the Universal Credit uplift permanent and extend it to legacy benefits, to confirm clearly that Scotland will receive furlough support outside of English lockdowns, and to bring in a financial support package for the 3 million people who are still excluded from available coronavirus support.
Gray said: “I am pleased the UK Government has decided to do the right thing and U-turn on the decision to re-introduce the MIF, which would have seen the self-employed take another huge financial hit in the middle of an economic crisis.
“Now the Tory Government must confirm it will take other necessary steps.
"Rishi Sunak must follow through on his commitment to do ‘whatever it takes’ to ensure nobody is left behind. If he will not, Scotland must have the necessary powers so we can get the job done.”
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