In line with inflation, today benefits are being uprated by 6.7 per cent. For the first time in four years, the local housing allowance has gone up, improving housing support for many private renters. But one group will not see any improvement in support at all: around 77,000 families are affected by the ‘benefit cap'.
A change is coming to child benefit. This Saturday, more families will become eligible as the earnings threshold at which you start losing child benefit increases. The government has finally recognised that ‘the way we treat child benefit in the tax system is confusing and unfair’ and proposed two changes to try to simplify it. It’s ironic that this confusion and unfairness was introduced by the government in the first place.
There was very little in this Budget for children and families living in poverty. The Chancellor said yesterday that this government does not pass on its bills to the next generation, but the 4.2 million children living in poverty today are the next generation. Child poverty is scarring, and the decisions taken yesterday will leave a legacy of cold homes, empty tummies and crumbling classrooms. We are in urgent need of a plan to tackle child poverty.
For almost fifteen years, the four million kids from poor families have been at the bottom of the pile and today is no different. This was a Budget all but blind to buckling family budgets and broken public services and will leave a legacy of crumbling classrooms, cold homes, and empty tummies.
Our pre-Budget briefing details how best to invest financial support in children to reduce child poverty and give every child the chance to fulfil their potential.
Our interviews show that claimants did not have the information they needed or wanted to understand how moving to UC would affect them. Such misinformation and misunderstanding are likely to be reasons some people are not moving to UC despite having a strong financial incentive to do so.
The Chancellor’s decisions to uprate benefits in line with inflation and to restore local housing allowance rates to the 30th percentile of rents were welcome, despite coming wrapped in punitive rhetoric, and accompanied by yet another ramping up of benefit sanctions. Increasing benefit rates and support with rent costs will make a difference to many families continuing to struggle with rising prices, who approach this winter terrified about how they will get by. But, sadly, these changes will provide absolutely no help to the over 85,000 households affected by the benefit cap, who will receive not one penny more.