LABOUR has committed to replacing Universal Credit with a “better system” which allows people to keep more of the money they earn.

The shadow work and pensions secretary Jonathan Reynolds has criticised the government’s plan to cut the Universal Credit uplift, which ended this week, claiming the Prime Minister will essentially take £1,000 a year from six million families.

And he has said the party would "maintain the uplift and replace Universal Credit," if elected to power.

Speaking at the recent party conference the MP said: "The Tories now seem determined not to learn any lessons from the pandemic.

“(The uplift cut) will be felt at kitchen tables and in high streets across the UK.

"He will take £1,000 a year from six million families through a cut his own government calls ‘catastrophic’.

“To borrow a phrase from our new Foreign Secretary - that is a disgrace.”

He noted that while Labour says “cancel the cut”, the party realises the problems with Universal Credit “go beyond the core amount”.

“For too many people it’s associated with poverty, housing arrears, sanctions and stigma," Mr Reynolds said.

“That’s because the Conservatives designed it thinking no-one they knew would use it. It was for ‘other’ people. That’s not acceptable to us.

“So we will replace Universal Credit with a better system.

"The next Labour government will make sure people keep more of the money they earn.

“And it’s just part of our plan. Higher wages, increased sick pay, the right to join a union, flexible working for all, protection from unfair dismissal, a real safety net, and real security and prosperity.”

Analysis by Labour indicated that the average working family will be more than £1,700 worse off by April.

Transport Secretary Grant Shapps said: "Governments have to make decisions, and I know that, for example, with Universal Credit it made the decision proactively without any prompting to add in the £20 a week to give people additional support during coronavirus.

“It was for a limited period for coronavirus.”