MORE than 11,500 York families are likely to be hit financially when the £20 Universal Credit boost ends, City of York Council has claimed.

The changes in benefit policy implemented in the early months of the pandemic saw including the £20 a week uplift to tax credits and Universal Credit - but it is set to end on October 1.

York Liberal Democrat councillors are now urging the Government to keep the "vital lifeline" in place, warning that 11,610 families in the city could be left worse off.

It comes amid new data from the Joseph Rowntree Foundation which estimates that the Universal Credit cut alone could force 500,000 people - almost half of them children - into poverty.

Councillor Nigel Ayre, Liberal Democrat Executive Member for Finance and Performance, said: “This relatively small boost has been a vital lifeline to thousands of York residents. This cut will do untold damage to so many of our local families. 

"There is no question that Government has to reverse this needless cut. Instead of pulling the rug from under the feet of struggling families, they should commit to maintaining the Universal Credit uplift and give thousands of local households the security they need.”

But the Government responded to the comments by saying it has spent £400 billion protecting people’s jobs, livelihoods and supporting businesses and public services.

By the time the Universal Credit uplift ends, the Department for Work and Pensions claims it will have spent more than £9 billion.

A spokesperson said: "As announced by the Chancellor at the Budget, the uplift to Universal Credit was always temporary. It was designed to help claimants through the economic shock and financial disruption of the toughest stages of the pandemic, and it has done so.

“Universal Credit will continue to provide vital support for those both in and out of work and it’s right that the Government should focus on our Plan for Jobs, supporting people back into work and supporting those already employed to progress and earn more.”

Meanwhile the Council is set to create support for those transferring to Universal Credit, including an increase for existing emergency support funding under the York Financial Assistance or YFAS scheme.

It has also used local funds to boost the Government Hardship Fund - of which the £957,000 allocated to York was exhausted by the end of October 2020.