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Retail workers face poverty if government cuts benefits, says Usdaw

TENS of thousands of low-paid retail workers will be driven deeper into poverty if the government cuts benefits this winter, their union warned today.

Usdaw argued that shop workers are already suffering because last year the government axed the £20 uplift to universal credit payments, introduced during the pandemic.

The union called on the government to increase benefits by the rate of inflation, at more than 10 per cent, instead of the much lower wage rate, which is around 5 per cent.

Usdaw, which represents 360,000 workers in retail, warehousing and distribution, also said that next year’s increase in the minimum wage due in April should be brought forward.

The appeal comes against a background of prevarication from Prime Minister Liz Truss and Chancellor Kwasi Kwarteng over whether or not benefits will go up by the rate of inflation when an increase is due on October 19.

Usdaw general secretary Paddy Lillis said: “This time last year the government inflicted a cruel £20-per-week cut in universal credit that cost claimants’ over £1,000 per year.

“Now neither the Prime Minister nor Chancellor are able to do the decent thing, provide the assurance that low-paid working people need and guarantee that welfare benefits, including universal credit, will rise in line with inflation.

“The government has also failed to promise that there won’t be cuts in public services, which many low-paid workers totally rely on.

“Attempting to balance the books on the backs of the poorest in society is fundamentally wrong at any time and it will be especially devastating for many workers in the midst of a cost-of-living crisis.”

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