Nothing left to cut back: rising living costs and universal credit

Post date: 
15 February 2022

New statistics out today show that in November 2021, 3.6 million children were in families relying on universal credit (UC). With prices set to rise at twice the rate of benefits, these families and others receiving social security face a significant real-terms cut to their benefits. Read our briefing.

In April, UC will increase by 3.1 per cent, just as inflation is predicted to peak at 7.25 per cent. This means the value of UC for families with children will fall by around £570 a year, on average. The 180,000 families subject to the benefit cap will experience an ever greater fall in the value of their UC.

Without further government action, out-of-work families with children will be the furthest away from being able to afford an acceptable standard of living since records began in 2008.