People with children claiming Universal Credit could lose £1,000 per year, according to a think tank.
The Department for Work and Pensions (DWP) has been warned that families on a low income will be worse off financially if the UK Government does not increase benefits in line with inflation.
While a decision on benefit rises has not been made, Chancellor of the Exchequer Jeremy Hunt has not ruled out increasing benefits in line with earnings, or other economic figures, rather than inflation.
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As reported by the Liverpool ECHO, think tank The Resolution Foundation has stated that this would result in a real-terms cut of £1,000 per year for families claiming Universal Credit.
A working single parent with a single child could lose £478, while a working couple with three kids could lose £978. Meanwhile, a couple with a single child only receiving Child Benefit would lose £52 a year, and a single disabled adult on Universal Credit would lose £380.
Principal economist at the Resolution Foundation Adam Corlett said: “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.”
Ministers have reportedly stated that pensions will increase in line with inflation.
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