In line with inflation, today benefits are being uprated by 6.7 per cent. For the first time in four years, the local housing allowance has gone up, improving housing support for many private renters. But one group will not see any improvement in support at all: around 77,000 families are affected by the ‘benefit cap'.
A change is coming to child benefit. This Saturday, more families will become eligible as the earnings threshold at which you start losing child benefit increases. The government has finally recognised that ‘the way we treat child benefit in the tax system is confusing and unfair’ and proposed two changes to try to simplify it. It’s ironic that this confusion and unfairness was introduced by the government in the first place.
For almost fifteen years, the four million kids from poor families have been at the bottom of the pile and today is no different. This was a Budget all but blind to buckling family budgets and broken public services and will leave a legacy of crumbling classrooms, cold homes, and empty tummies.
High inflation pushed the cost of raising a child to £166,000 for a couple and £220,000 for a lone parent in 2023 but the enduring impact of benefit cuts and ongoing price rises have left many parents unable to give their children what the public says is a minimum acceptable living standard, new research shows.
The Chancellor’s decisions to uprate benefits in line with inflation and to restore local housing allowance rates to the 30th percentile of rents were welcome, despite coming wrapped in punitive rhetoric, and accompanied by yet another ramping up of benefit sanctions. Increasing benefit rates and support with rent costs will make a difference to many families continuing to struggle with rising prices, who approach this winter terrified about how they will get by. But, sadly, these changes will provide absolutely no help to the over 85,000 households affected by the benefit cap, who will receive not one penny more.
It’s right that benefits are uprated as usual but this should never have been in doubt and legislation mandating inflationary increases is needed as a basic protection for living standards. Struggling families have been worrying themselves sick for months about whether an unmanageable income cut was coming in order to provide the government with a rabbit-out-of-the-hat moment.
Ahead of the Autumn Statement, organisations representing children’s doctors, school leaders and social workers have joined Child Poverty Action Group in calling on the Chancellor to uprate benefits from April at least in line with September’s inflation rate as usual.
Struggling families would be substantially worse off than they were five years ago if benefits are not uprated with inflation, new analysis from Child Poverty Action Group (CPAG) shows.
As more families migrate from older benefits to universal credit, new official figures show there are 2.3 million children in households on universal credit (UC) which are having debt deductions from their benefit, forcing them to live on significantly less than their entitlement.