An estimated 1.8 million households on universal credit (UC) are having to live on significantly less than they are entitled to because the DWP is deducting debt repayments from their benefits at an unaffordable rate, according to new CPAG estimates. There are an estimated 2 million children in these households.
New data released today shows that 4.1 million households were claiming universal credit (UC) in February 2022. Benefits were recently increased by less than half the rate of inflation, meaning these families saw the real value of their UC fall by £660 a year on average. And while benefit levels sit at historic lows, an estimated 1.8 million households are receiving an average of £61 less each month than they are entitled to because of automatic deductions from their UC payment.
Today we publish our third annual report ‘The Cost of a Child in 2014’, written by Donald Hirsch from the Centre for Research in Social Policy at Loughborough University and funded by JRF. It draws on the Minimum Income Standard project (MIS) to establish how much families need to cover their basic needs like food, clothes and shelter, and to participate in society.