Johnson: Wages will rise: British government cuts welfare payments significantly

Wednesday, October 06, 2021

Johnson: Wages will increase
The British government made significant cuts in welfare payments

The British government is cutting the welfare benefits of about six million people by 15 percent. The criticism is similarly great, not least because inflation is currently at four percent. Prime Minister Johnson, on the other hand, predicts rising wages. Because of this, he once again cites Brexit.

The British government has come under criticism for its decision to cut social benefits again after a temporary increase during the coronavirus pandemic. Britons who rely on support for payments known as Universal Credit have faced £20 less in a week since Wednesday. This corresponds to a reduction of 15 percent. The debate threatened to cast another shadow on the ruling Tories’ convention in Manchester, which ended on Wednesday.

According to a BBC report, the cuts will affect about 5.8 million people in England, Scotland and Wales who are either unemployed or receiving wage increases.

The cost of living is rising significantly

Citizens Advice warned that a third of these people would be in debt as a result of the cuts. It is also criticized that the move comes at a time when the cost of living is rising. The main burden on the wallet of many households is the increase in energy costs. The Bank of England expects inflation to rise to four percent.

Prime Minister Boris Johnson denied fears of a life crisis during his four-day party convention of Conservatives. He is not worried and is dependent on wage growth in the country, as Brexit has freed itself from dependence on cheap labor from abroad.