Universal credit should be given an “emergency boost” or many who have lost jobs as a result of the coronavirus pandemic risk being plunged into poverty, union leaders have warned.
The call from the Trade Union Congress (TUC) comes after the Department for Work and Pension said it had seen a surge in benefit claims, with almost 950,000 new claims since 16 March – up from around 100,000 in a normal two-week period.
Of those people who applied, around a quarter, 70,000 out of around 270,000 of new claimants in one week applied for advanced loan from the department – designed for those who “don’t have enough to live on” while they await their first universal credit payment.
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But without an urgent increase to universal credit – currently around £94 per week for basic rate – the body representing almost fifty affiliated unions warns that support will be lower in real terms during the covid-19 outbreak than unemployment peaks in the 1980s and 1990s.
The TUC said that in 1984 when unemployment levels reach 11 per cent, benefits were worth a quarter of average earnings. But today – even after the recent increase of £20 a week – the basic rate of universal credit is worth a sixth of average weekly pay at £94 a week, their report added.
Union leaders also urged the government to move to a earnings-related system for benefits in the longer term based on models of other European countries. In Germany, for example, those who lose their jobs are entitled to 60 per cent of the net wage they received on average per day during the 12 months before becoming unemployed.
General secretary Frances O’Grady, said: “Unions have worked closely with government during this crisis to protect livelihoods. But there is still more to do. People who lose their jobs must get the support they need to make ends meet and to get back on their feet.”
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A man walks down a deserted Camden High Street
Photos Angela Christofilou
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Goodge Street Station is one of the many stations closed to help reduce the spread
Angela Christofilou
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An empty street in the heart of Chinatown
Angela Christofilou
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People in masks in Chinatown a day after the lockdown
Angela Christofilou
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A near-empty Piccadilly Circus during the first week of lockdown
Angela Christofilou
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Sonja, my neighbour, who I photographed while taking a short walk. It was nice to briefly chat even from a distance
Angela Christofilou
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A couple sit on the empty steps of the statue Eros in Piccadilly Circus
Angela Christofilou
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Making sure I stay two-meters apart – D’Arblay Street, Soho
Angela Christofilou
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A mannequin behind a shop window. UK stores have closed until further notice
Angela Christofilou
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A notice displayed on a shop window in Camden
Angela Christofilou
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As part of the lockdown, all non-essential shops have been ordered to close.Image from Camden High Street
Angela Christofilou
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A skateboarder wearing a mask utilises his exercise allowance in the Camden area
Angela Christofilou
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Communities have been coming together in a time of need
Angela Christofilou
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A woman stands alone in a deserted Oxford Street. Up until a few weeks ago, on average, half a million people visited the street per day
Angela Christofilou
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A couple walk hand in hand down a street in Soho, a day before the stricter lockdown was announced
Angela Christofilou
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During the first week of March, shoppers focused on stockpiling necessities ahead of a countrywide lockdown
Angela Christofilou
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Many supermarkers are operating a queuing system to make sure only a limited amount of customers are allowed in at anyone time
Angela Christofilou
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‘Stay Safe’ – Curzon cinemas are temporarily closed under the new measures
Angela Christofilou
19/29
Pubs, restaurants and bars were ordered to shut as part of the lockdown
Angela Christofilou
20/29 Camden High Street
There are fears that coronavirus could lead to permanent closure of struggling shops
Angela Christofilou
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Camden Town is eerily silent on a normal working day
Angela Christofilou
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Shops and supermarkets ran out of hand sanitisers in the first week of the lockdown. As we approach the end of the second week most shops now have started to stock up
Angela Christofilou
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Empty streets around Soho
Angela Christofilou
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A noticeboard on Camden High Street urges the public to stay at home
Angela Christofilou
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Camden High Street, one of London’s busiest tourist streets turns quiet
Angela Christofilou
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Thriller Live confirmed its West End run ended in the wake of the coronavirus outbreak
Angela Christofilou
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Empty and eerie Soho streets after stricter rules on social distancing announced
Angela Christofilou
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A woman pauses for a cigarette on Hanway Street, behind Tottenham Court Road
Angela Christofilou
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A man steps outside onto Hanway Street, that sits behind what is usually a bustling retail hub
Angela Christofilou
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A man walks down a deserted Camden High Street
Photos Angela Christofilou
2/29
Goodge Street Station is one of the many stations closed to help reduce the spread
Angela Christofilou
3/29
An empty street in the heart of Chinatown
Angela Christofilou
4/29
People in masks in Chinatown a day after the lockdown
Angela Christofilou
5/29
A near-empty Piccadilly Circus during the first week of lockdown
Angela Christofilou
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Sonja, my neighbour, who I photographed while taking a short walk. It was nice to briefly chat even from a distance
Angela Christofilou
7/29
A couple sit on the empty steps of the statue Eros in Piccadilly Circus
Angela Christofilou
8/29
Making sure I stay two-meters apart – D’Arblay Street, Soho
Angela Christofilou
9/29
A mannequin behind a shop window. UK stores have closed until further notice
Angela Christofilou
10/29
A notice displayed on a shop window in Camden
Angela Christofilou
11/29
As part of the lockdown, all non-essential shops have been ordered to close.Image from Camden High Street
Angela Christofilou
12/29
A skateboarder wearing a mask utilises his exercise allowance in the Camden area
Angela Christofilou
13/29
Communities have been coming together in a time of need
Angela Christofilou
14/29
A woman stands alone in a deserted Oxford Street. Up until a few weeks ago, on average, half a million people visited the street per day
Angela Christofilou
15/29
A couple walk hand in hand down a street in Soho, a day before the stricter lockdown was announced
Angela Christofilou
16/29
During the first week of March, shoppers focused on stockpiling necessities ahead of a countrywide lockdown
Angela Christofilou
17/29
Many supermarkers are operating a queuing system to make sure only a limited amount of customers are allowed in at anyone time
Angela Christofilou
18/29
‘Stay Safe’ – Curzon cinemas are temporarily closed under the new measures
Angela Christofilou
19/29
Pubs, restaurants and bars were ordered to shut as part of the lockdown
Angela Christofilou
20/29 Camden High Street
There are fears that coronavirus could lead to permanent closure of struggling shops
Angela Christofilou
21/29
Camden Town is eerily silent on a normal working day
Angela Christofilou
22/29
Shops and supermarkets ran out of hand sanitisers in the first week of the lockdown. As we approach the end of the second week most shops now have started to stock up
Angela Christofilou
23/29
Empty streets around Soho
Angela Christofilou
24/29
A noticeboard on Camden High Street urges the public to stay at home
Angela Christofilou
25/29
Camden High Street, one of London’s busiest tourist streets turns quiet
Angela Christofilou
26/29
Thriller Live confirmed its West End run ended in the wake of the coronavirus outbreak
Angela Christofilou
27/29
Empty and eerie Soho streets after stricter rules on social distancing announced
Angela Christofilou
28/29
A woman pauses for a cigarette on Hanway Street, behind Tottenham Court Road
Angela Christofilou
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A man steps outside onto Hanway Street, that sits behind what is usually a bustling retail hub
Angela Christofilou
She added: “If we don’t urgently boost universal credit many risk being plunged into poverty. That is not right. We need a social security system that can deal with the current pandemic and beyond. It’s time to start a national conversation about how we repair Britain’s safety net and help those who fall on hard times to bounce back”.
A spokesperson for the Department for Work and Pensions said: ““Universal credit is delivering vital support to millions of people in these unprecedented times and from today payments will rise by up to £1,040 a year.
“This government is committed to doing whatever it takes to help those affected by COVID-19 and has announced over £6.5bn of additional measures through the welfare system.”
