Archbishop of Canterbury demands Universal Credit is SCRAPPED for causing 'intense suffering'

The Archbishop of Canterbury today dramatically called for Universal Credit to be scrapped.

Justin Welby blasted the Government's flagship welfare reform and warned it had triggered "intense suffering" and left many poor Brits "worse off than they were".

He also said the living wage should be higher and criticised firms like Amazon for paying "almost nothing" in taxes.

In a question and answer session with delegates following his speech at the TUC Congress in Manchester, Rev Welby was asked for his view on Universal Credit.

He said: "Universal credit, we know, was supposed to reform the benefit system, make it simpler and more efficient. It has not done that. We know that.

"We know that it has left too many people worse off than they were, putting people at the heightened risk of hunger."

Lashing out at the controversial new system, he told delegates: "Can you believe we say this in England, in the 21st century? Heightened risk of hunger, debt, rent arrears and food banks.

"We now know about 45% of people who attend food banks have at least one person in work. An awful lot of them have two people in work.

"And when Universal Credit comes into a local area the need for food banks goes up very significantly."

He added that delays in people receiving benefits due to the reform are causing "intense suffering" and said the new system "is not working".

"What is clear is if they cannot get it right, they need to stop rolling it out."

His answer won applause from hundreds of delegates in Manchester.

The archbishop also won applause from delegates for a section of his speech devoted to tax.

He said: "Not paying taxes speaks of the absence of commitment to our shared humanity, to solidarity and justice. If you earn money from a community, you should pay your share of tax to that community.

"I was in business, and I know that, within limits, it's right and proper for people to arrange their tax affairs, and for companies to do so.

"But when vast companies like Amazon, and other online traders, the new industries, can get away with paying almost nothing in tax, there is something wrong with the tax system.

"They don't pay a real living wage, so the taxpayer must support their workers with benefits; and having leached off the taxpayer once they don't pay for our defence, for security, for stability, for justice, for health, for equality, for education.

"Then they complain of an undertrained workforce, from the education they have not paid for, and pay almost nothing for apprenticeships. Those are only a fraction of the costs of aggressive tax management.

"Let us not delude ourselves into thinking that the gig economy is the only reincarnation of oppression of the vulnerable in employment.

"Pensions are just one example of the profit motive leading to the weakest being given the most risk and the strongest the most protection.

"In these areas, and in employment rights, and in many others, we see that where inequality and profound injustice seem entrenched, insurmountable, it leads to instability in our society: divisions between peoples, and vulnerability to the populism that stirs hatred between different ethnicities and religious groups, the rise of ancient demons of racism, anti-Semitism, Islamophobia and xenophobia."

The Government defended its flagship welfare reform, saying the old system was "out-of-date".

A Department for Work and Pensions spokesman said: "Universal Credit (UC) replaces an out-of-date, complex benefits system with cliff edges that disincentivised work and often trapped people in unemployment.

"Under UC, evidence shows people are moving into work faster and staying in work longer than under the old system.

“Through our ‘test and learn’ approach, we have listened to feedback from stakeholders and claimants and made improvements, including increasing advances to 100%, removing the 7-day waiting period and paying people’s Housing Benefit for two weeks while they wait for the first UC payment.”