‘Could put that back in!’ Clarke squrims over Universal Credit uplift return in heated row

The Treasury Minister was embroiled in a heated exchange with Susanna Reid and Richard Madeley over the Government’s strategy to address rising costs across the UK. Inflation rose to 9 percent in April, leaving Britons struggling with bills and an increase in National Insurance contributions. Ms Reid questioned whether the Treasury is now considering bringing back the Universal Credit uplift as part of the additional help Boris Johnson pledged to bring in to help.

The uplift, which was originally introduced during the coronavirus pandemic, was removed last October.

Ms Reid said: “One of the things you did was you had a Universal Credit uplift, £20 a week to help people through a really difficult time and that was the pandemic.

“Then took that away because it was apparently no longer needed. You could put that back in as households face fuel poverty and food inflation. Is that something you’re considering?”

The Treasury Minister replied: “On Universal Credit, in December, we made one of the biggest adjustments to the system since its beginning in the form of the very major change to what is called the taper rate, the rate at which benefits are withdrawn as people’s income rises.

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“That was cut from 63p in the pound to 65p in the pound. That is a tax cut worth an average of £1,000 for two million people.”

Ms Reid however appeared unimpressed with the response: “Since then inflation has gone up. People are facing fuel poverty and food poverty.”

But Mr Clarke defended the Government’s strategy, insisting ministers are keeping all options on the table to help Britons.

He said: “The principle is that it is allowing people to keep more of what they earn. And it’s a very important principle for us to stand behind.

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“Because every morning, on this programme, we’ve been putting these questions to people like you, discussing the various options, talking about VAT, talking about the uplift.

“We talk and talk and talk, and all we ever get, and we got it again from you this morning, is, ‘we’re doing our best, we’re looking at various options, we’ll come to a decision.’

“When? When will you announce some direct action to help people who can’t afford to pay the electricity bill and are down to one meal a day and who are traveling on buses to keep warm?

“All of that is real, it’s happening out there.”

Mr Clarke hit back: “We have announced a package of measures. We’ve put in place already this year [a package] worth £22 billion.

“You’re suggesting we’re standing idly by and we are not.”