Amber Rudd has announced a reform to the new universal credit scheme. The Work and pensions secretary criticised the current system. She also announced plans to remove the cap on benefits such as: tax credits, child benefits, jobseekers allowance, and universal credit. According to her, the cap introduced by George Osborn in 2016 is unlikely to be renewed for 2020. The decision to scrap the two-child limit on Universal Credit, unless the children were born after April 2017, has already been announced.
Unemployment has hit Hastings hard, government statistics show it is the 13th most deprived town in the UK. Many shops heave felt the struggle as local’s businesses are forced to close. As 20% of the population in Hastings claim benefits, these new changes could bring more money to local businesses. How-ever most local businesses owner are sceptical that it will make any difference.
Although Rudd claims the scheme will help around 15,000 families some people are critical of her plans, Shadow work and pensions secretary Margaret Greenwood said the move was a "partial U-turn" that did not go far enough. Additionally, many using the scheme claim that after moving to a new area they did not see any money for 5 and in some cases even 6 weeks, forcing many in to debt.