Ministers consider climbdown over ending universal credit boost
January 19, 2021, 12:30 pm

Ministers consider climbdown over ending universal credit boost

Welfare minister Will Quince said a decision would be made closer to the 3 March budget because of the highly uncertain economic outlook.

Potential move comes amid pressure from a series of Tory MPs to extend the £20-a-week uplift

The Treasury is considering a partial climbdown over plans to end the boost to universal credit amid pressure from the work and pensions secretary, Thérèse Coffey, and after six Conservative MPs defied a call to abstain on a non-binding vote in the Commons.

Boris Johnson also hinted at a rethink over the £20-a-week uplift, which is due to end in April, saying the government wanted to ensure “people don’t suffer as a result of the economic consequences of the pandemic”.

The welfare minister, Will Quince, said a decision would be made closer to the 3 March budget because of the uncertain economic outlook. But the Institute for Fiscal Studies thinktank said the government must make the decision much sooner.

“They ought to resolve the uncertainty one way or another as soon as possible,” the IFS said, noting that £20 a week represents 13% of an average recipient’s UC entitlement, or as high as 21% for some. “A family currently deciding where they can afford to rent, for example, surely ought to know what their benefit entitlement will be in three months’ time,” its latest report said.

Labour’s non-binding motion pressing the government to maintain the increase was approved by 278 votes to zero, after Johnson earlier ordered his MPs to abstain on the “stunt”.

While much of the pre-debate coverage had centred on dissent among northern Tory MPs from the 2019 intake, none of these were among the six who did vote for the Labour measure.

They were Stephen Crabb, the former work and pensions secretary, Robert Halfon, who chairs the education select committee, Jason McCartney, Anne-Marie Morris, Matthew Offord and Peter Aldous. None represent northern or Midlands seats.

Rishi Sunak, the chancellor, is understood to be reticent to make the uplift permanent, which Treasury sources said would cost £6bn a year.

Coffey, who met Sunak last week, is understood to be keen to find a compromise to stop the cut, and the Treasury is considering a range of options as a potential sweetener for Conservative MPs which stop short of extending the uplift.

One Tory source said MPs had been badly burnt by the rows over free school meals, including cabinet ministers who blamed Sunak for holding back extra funding, and they did not want to see a repeat of public outcry.

Options being considered by the Treasury include a temporary extension of the £20-a-week uplift for six months, though there are concerns that any extension would prolong calls for the rise to be made permanent.

Another reported option under consideration is a one-off lump sum of £500 to all UC claimants, a significantly cheaper policy than extending the uplift – costing about £3bn, according to the IFS.

Quince hinted at the climbdown during a Labour opposition day debate on the uplift on Monday, saying the government needed to wait to see the state of the economy closer to the budget.

“The reality is we simply do not know what the landscape will look like and that is why it’s right that we wait for more clarity on the national economic and social picture before assessing the best way to support low-income families moving forward,” he said.

Johnson faced open dissent from a series of Tory MPs, including the Northern Research Group which represents 65 backbenchers, many from the 2019 intake in former Labour seats.

Simon Fell, MP for Barrow and Furness, said he stood with colleagues from the group “in saying that now is not the time to consider any reduction in the uplift in UC. This uplift was brought in to help people with the extreme challenges of the pandemic, and these challenges haven’t passed.”

Stephen Crabb, the former work and pensions secretary, said the jobs market was “a horrible place right now for many people”. “I have no qualms about going out and defending very difficult decisions when they’re based on a clear plan with clear justifications,” he told the Commons. “But the truth is I don’t believe we have such a plan.”

Opening the UC debate for Labour, Jonathan Reynolds, the shadow work and pensions secretary, said he was “not here today to claim that Conservative MPs are heartless, or lack compassion” but removing UC uplift “isn’t just morally unjustifiable, it’s economically incompetent”.

He said: “This £20 a week isn’t saved by families. It’s spent. No one can reasonably argue that the pandemic and the unemployment crisis will be over by April this year. And whatever protestations we hear, and however frankly people vote today, I know there are plenty on the benches opposite who agree with this case.”

source: Jessica Elgot

Levant

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BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).

Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.