When the Covid pandemic hit the world last year it was not just lives that were at stake, it was also the world’s economy. You cannot put a price tag on a life, but the economy for our country and others, is a living and evolving thing.
The governments realised this, and also realised that when you put people, and businesses in lock down, you are essentially shutting down the economy.
If people cannot go to work, earn money, they cannot buy things, make purchases, and spend that money. In addition, if shops are closed, there is no where to spend what money they may have.
The government and the Internet step in here:
- The government sets-up a furlough scheme to see that workers get a percentage of their wages while not working.
- The government here and in other countries increases benefits for those that were not working.
- Internet sales increase, as does food delivery services.
After a rough and bumpy roll-out a few years ago, Universal Credit became the new Dole, the new benefit system to replace Housing Benefit, Working Tax Credit, Child Tax Credit, Job Seekers Allowance and a few other benefits. It was meant to make the system easier to apply and the government to handle.
For some Universal Credit has worked, pun intended.
As you go back to work you can still receive the benefit, but your benefit amount is reduced by .63p for every £ pound you earn. Once you reach a threshold where you are earning more than the benefit, Universal Credit ceases.
Some call this .63p reduction a tax.
Last year in response to the pandemic, the government gave Universal Credit recipients a raise in the benefit of £20 per week. This is £80 a month, which when you are not working, £80 is £80. It does help.
This increase to Universal Credit is due to stop on October 6 of this year. This is expected to affect at minimum 5.5 million households.
Many have called for this increase to be maintained indefinitely, however for now, the government has stated the increase will cease as of October 6th.