People on Universal Credit should have historic debt owed to the DWP cancelled if the £20 a week cut goes ahead according to Citizens Advice Scotland.
CAS report found many would be unable to afford necessities if the cut goes ahead.
Three quarters of people in a Citizens Advice Scotland report into Universal Credit during the pandemic said they would not be able to cope if they benefit was cut by that amount.
One in four said they wouldn’t be able to pay for essentials and 14% said they wouldn’t be able to afford food.
The report found Almost two in three (64%) had to cut down on at least one basic necessity during their Universal Credit claim, and one in five said they had to cut down on food.
Citizens Advice recommended that the cut does not go ahead and that historic Tax Credit debt and other historic benefit overpayment debt should be cancelled.
The cut could have a knock-on effect on other benefits like the Scottish Child Payment.
Citizens Advice called for better DWP communication if the cut does go ahead, particularly on its impact for people in work and accessing passported benefits such as Scottish Child Payment.
Pam Duncan Gancy, Glasgow Labour MSP said to the First Minister: “Some families in Scotland will no longer be eligible for the Scottish Child Payment.
She asked: “Will the Scottish Government use its powers here to ensure that those families who would have been eligible for the child payment continue to get it?
The Scottish Government has also been asked to mitigate the cut and make up the shortfall.
Sean Clerkin of the Scottish Tenants Association has written to the First Minister asking for it to fund the cash instead.
He said: “There is no moving Johnson and his Tory government on this issue. Appealing to the Tory Government is a waste of time.
“Instead, I am asking you as First Minister in this open email to step in with the Scottish Government using cash reserves centrally and in Local Authorities to maintain the £20 a week uplift of those on Universal Credit for as long as possible.
“This is the time to use such contingency funds to help the 500,000 worst off people in Scottish Society to avoid the extremes of poverty such as malnutrition and eviction from their homes in the near future.”
The First Minister has said that mitigation is not sustainable.
Nicola Sturgeon, in response to a question in Holyrood, said: “Every time the Conservatives at Westminster make a cut to social security and save money from that cut, they do not transfer that money to the Scottish Parliament so, every time we have to mitigate such a cut, we have to take money from elsewhere in the budget. It is an unsustainable way to proceed.”
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