The Welfare Benefits Uprating Bill has its Commons Second Reading on 8 January 2013.
This CPAG briefing covers the following key concerns:
- Social security and tax credits should keep up with the cost of living. The government argued that it was right to do this last year, and it remains ethically right for the reasons previously given by the Chancellor and detailed in the briefing.
- Failing to uprate in line with inflation will increase absolute child poverty, relative child poverty and the material deprivation of children. The government remains committed to its undertaking in the Coalition Agreement to reduce child poverty, but this is a clearly poverty-producing Bill.
- The Bill fails the Fairness Test in regard to income distribution. As the Treasury’s own analysis shows, the greatest burden is being put on the poorest, whilst many in the richest half of the population are being given net income increases.
- The Bill fails the Fairness Test for the working poor, as well as for the jobseeking, caring and disabled poor. The working and workless poor are often the same people cycling in and out of insecure jobs.