Laura Sharman 25 February 2022

Nine million families will be £500 worse off from April, analysis reveals

Nine million families will be £500 worse off from April, analysis reveals image
Image: Monkey Business Images / Shutterstock.com

A real-terms cut to benefits could push 400,000 people into poverty by April, new analysis has warned today.

Research by the Joseph Rowntree Foundation (JRF) found the decision to uprate benefits by 3.1% in April - even though inflation is forecast to hit 7% - will cause many of the UK's poorest families to be worse off financially.

It found around nine million households who receive benefits due to low incomes will be £500 worse off on average due to inflation from April.

Couple families with children in receipt of benefits due to low income will experience a real-terms cut of £720 per year, while the figure across all pensioner couples is £540 per year, according to the analysis.

JRF is calling on the Government uprating means-tested benefits by 7% in April to protect the poorest families from the worst impacts of rising costs.

Peter Matejic, deputy director of evidence and impact at JRF, said: 'People on the lowest incomes have already experienced a decade of cuts and freezes, followed by an overnight cut of £1,000 last autumn. The decision not to uprate benefits in line with inflation represents another cut for millions of people whose incomes will now fall even further behind the cost of living.

'There can be no justification for this. Our social security system should protect people from harm, not put them in danger. The government must change course and ensure that benefit levels reflect the higher rate of inflation we are all now experiencing. There is no doubt that a failure to do so will leave more people in our society unable to meet their most basic needs.'

A Government spokesperson said: 'We know this has been a challenging time for many people, which is why we’re providing support worth around £12bn this financial year and next, to help households with the cost of living.'

SIGN UP
For your free daily news bulletin
Highways jobs

Senior Project Manager (Regeneration)

West Yorkshire Combined Authority
£49,359 to £56,057 per annum (pay award pending) – Grade 9
With ambitious goals ahead, we need dedicated individuals who are ready to make a real impact as part of our expanding Housing team Leeds / Hybrid
Recuriter: West Yorkshire Combined Authority

Information Governance Officer

Essex County Council
£28349.00 - £33351.00 per annum + pension
Information Governance OfficerPermanent, Full Time£28,349 to £33,351 per annumLocation
Recuriter: Essex County Council

Information Governance Officer

Essex County Council
£28349.00 - £33351.00 per annum + pension
Information Governance OfficerFixed Term, Full Time£28,349 to £33,351 per annumLocation
Recuriter: Essex County Council

HR Advisor - Pay & Policy (Career Grade)

Wakefield Council
Grade 9 - Grade 10, Career Grade, 24 hours, Permanent
Are you ready to make a difference and shape policies that foster a high performing and inclusive workplace? Wakefield, West Yorkshire
Recuriter: Wakefield Council

Leisure Support Assistant

Wakefield Council
£12,013.50 - £12,202.00, Grade 3, 18.5 hours, Permanent
Are You Ready to Make a Difference in Your Community? Wakefield, West Yorkshire
Recuriter: Wakefield Council
Linkedin Banner