William Eichler 13 October 2022

Benefit cuts to reduce incomes of nine million households

Benefit cuts to reduce incomes of nine million households image
Image: Becky Stares/Shutterstock.com.

The Government’s plans to cut benefits by increasing them below the rate of inflation will leave the poorest families struggling to get by on incomes that will drop to levels last seen around the turn of the century.

A new briefing from the Resolution Foundation assesses the impact of raising working-age benefits in line with earnings rather than prices in terms of the savings for the Treasury and the impact on households.

It finds that nine million households – or 45% of working-age UK households – containing 30 million people will be affected if the Government goes ahead with reducing the uprating of non-protected working-age benefits, such as Universal Credit, next year.

Titled The Long Squeeze, the briefing also estimates that three million households (15% of working-age UK households) will lose over £500 as a result of the uprating.

The think tank also calculated that the policy would only save the Treasury around £3bn by 2026-27.

Adam Corlett, principal economist at the Resolution Foundation, said: ‘Plans to cut benefits like Universal Credit by uprating them by less than inflation could save the Treasury low billions of pounds, but reduce the incomes of nine million households. Working parents who receive Universal Credit and Child Benefit would be hit particularly hard, with some losing up to £1,000.

‘These cuts would come at a time when families are already set to struggle with rising prices, soaring mortgages, and the end of temporary support schemes. With benefits having repeatedly failed to keep pace with inflation over the past decade, this would see real income levels for Britain’s poorest families fall to levels not seen since the turn of the century.’

Fixing the broken retrofit system image

Fixing the broken retrofit system

Ian Preston, Centre for Sustainable Energy, argues the retrofit system is broken and offers lessons for the Local Authority Retrofit Scheme.
For your free daily news bulletin
Highways jobs

Homelessness Prevention and Solutions Officer

London Borough of Richmond upon Thames and London Borough of Wandsworth
£36,426 to £44,139 per annum
Who are we looking for? We are especially interested in your transferable skills in particular your ability to assess information, understand and accurately apply the assessment criteria, problem solve and communicate effectively with applicants, colleag Wandsworth, United Kingdom
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Principal Education Psychologist

West Northamptonshire Council
£69,010 - £72,966 Plus 3 SPA Points
The Service is very well regarded and supported within the council. We are ready to embark on a journey of development and growth and we are looking for enthusiastic and creative people to join a Senior Leadership Team which supports an ethos of distribut One Angel Square
Recuriter: West Northamptonshire Council

Operational Services Manager

South Derbyshire District Council
£49,498 to £51,515 per annum
South Derbyshire’s Operational Services team are looking to appoint a full-time Operational Services Manager South Derbyshire District Council, Boardman Industrial Estate
Recuriter: South Derbyshire District Council

Principal Highways Officer

Lincolnshire County Council
£40,221 - £44,428
Our highways infrastructure is seen as high priority by our elected members Lincolnshire
Recuriter: Lincolnshire County Council

Senior HR Advisor - Project & Policy Delivery

West Northamptonshire Council
£48378 - £51571
We have a fantastic one-year fixed term contract or secondment opportunity for a Senior HR Advisor- Project & Policy Delivery working in our Policy and Projects Team. In this busy and varied role, you will consult with key stakeholders and our recognised Northampton
Recuriter: West Northamptonshire Council
Linkedin Banner

Partner Content

Circular highways is a necessity not an aspiration – and it’s within our grasp

Shell is helping power the journey towards a circular paving industry with Shell Bitumen LT R, a new product for roads that uses plastics destined for landfill as part of the additives to make the bitumen.

Support from Effective Energy Group for Local Authorities to Deliver £430m Sustainable Warmth Funded Energy Efficiency Projects

Effective Energy Group is now offering its support to the 40 Local Authorities who have received a share of the £430m to deliver their projects on the ground by surveying properties and installing measures.

Pay.UK – the next step in Bacs’ evolution

Dougie Belmore explains how one of the main interfaces between you and Bacs is about to change.