Families subject to the benefit cap will see the real value of their benefits fall by a monumental £1,840 per year in London and £1,600 outside the capital from April when inflation is expected to reach 8%, our new analysis shows.
In a letter to the chancellor last week, the Bank of England stated that it expected inflation to be “around 8 per cent” this spring. With UC set to rise by just 3.1% in April, families with children on universal credit now face a real-terms cut of around £660 per year, on average.
Benefits must keep pace with the rising cost of living. Child Poverty Action Group joins forces with over 50 organisations to call for benefits to be increased by at least 7 per cent in April to match inflation.