CPAG response to inflation rise

October 18, 2011

In response to the higher than anticipated inflation figures for September published today Alison Garnham, Chief Executive of Child Poverty Action Group (CPAG) said:

“Caught between the spiralling cost of essentials and a fall in the real value of benefits, it is low income families who are truly feeling the squeeze.

“Low income families, already struggling to make ends meet, have little scope to trim their spending habits when necessities such as food, fuel and clothes consume the vast majority of their limited incomes. As the price of essentials such as these rise sharply, poorer families have to make tough choices, not between luxuries and essentials, but between one basic good and another.

“Today’s inflation figures will be used to peg benefits for the coming year, and so have a double impact on many low income families. From now on the Government is using CPI to uprate benefits instead of the higher RPI. This technical-sounding change will hit families in the pocket. This year, the difference will be 0.4 per cent but the effect will get bigger every year and will tip more and more families over the edge into poverty.”

For further information please contact:

Imran Hussain Head of Policy, Rights & Advocacy, CPAG

Tel. 020 7812 5237 or 07983402283

ihussain@cpag.org.uk