Low income families £1,000-a-year worse off due to budget pressures

© Provided by Daily Mail MailOnline logo

A ‘triple-whammy’ of incoming budget pressures over the next six months could leave low income families more than £1,000 worse off annually, according to a think tank.

The Resolution Foundation said inflation, rising energy bills, the looming health and social care tax and next month’s proposed Universal Credit cut could leave households worse off even after increases in the minimum wage have been accounted for.

With inflation and soaring energy prices a global phenomenon as a result of emerging from the coronavirus pandemic – and therefore being beyond the Government’s control – the foundation is urging ministers to take action where they can by keeping the Universal Credit uplift in place for 4.4 million households.


Karl Handscomb, a senior economist at the Resolution Foundation, said upholding the weekly bonus would ‘go a long way towards easing the coming cost-of-living squeeze’.

The Treasury provided the additional £20 per week to benefit recipients at the outset of the pandemic, but Chancellor Rishi Sunak has so far been adamant it must end by October.

The uplift was meant to last a year but was extended by six months in the March Budget.

In their financial analysis, the independent think tank researchers said they took into account the consumer prices index (CPI) hitting 4% – the highest in a decade – over the winter, increased energy bills with the 12% increase in the energy price cap from October 1 and a further projected 19% rise in six months, the cut to UC from October 6 and the 1.25% health and social levy being due from next April.

The energy price cap increase means bills are set to rise by £139 a year to £1,277 for a typical gas and electricity customer from next month.


The foundation said that even with a 37p increase in the national living wage from next April, and the highest benefits uprating since 2012 in the same month as a result of inflation being forecast to hit 2.7%, a typical low-income household was still likely to feel the pinch, with families with children the worst off.

A couple with two children, where the parents are both working full-time and earning the minimum wage and slightly above that rate, would be £23 a week worse off over the next six months, with the £3 per week boost from the national living wage dwarfed by rising energy bills and the cut to UC, according to the organisation.

Their analysis also suggests that a single parent working part-time could see their income fall by £20 a week over the next six months, while a low-earner without children working full-time on minimum wage could see their £9-a-week boost in hourly pay rate wiped out by the cost of living crunch.

Mr Handscomb said: ‘Britain is about to enter a tight cost-of-living squeeze over the next six months as high inflation and rising energy bills collide with the Government’s decision to cut benefits and raise taxes.

‘Low-and-middle-income families will face the tightest squeeze.

‘Many drivers of high inflation should be short-lived, but that will be of little comfort to families struggling over the coming weeks and months.

‘While policies like the national living wage will deliver a welcome income boost for some, for many low-income families this won’t come close to offsetting the damage caused by cutting universal credit.

‘Maintaining the £20-a-week uplift will go a long way towards easing the coming cost-of-living squeeze for millions of families.’

A Government spokesman said: ‘We’ve taken action to keep the cost of living down for families, including the energy price cap, which is in place to protect 15 million households from increases in global gas prices this winter, and the doubling of free childcare.

‘Our warm home discount, winter fuel payments and cold weather payments will also support millions of vulnerable and low-income households with their energy bills.

‘The uplift to Universal Credit was always a temporary measure to help claimants through the toughest stages of the pandemic, and it has done so.

‘It’s right that as the economy rebounds, we should focus on our multibillion-pound plan for jobs, supporting people back into work and helping the employed progress in their career and earn more.’

Internet Explorer Channel Network
News Related


'Four Hours at the Capitol' review: A taut HBO and BBC documentary grimly recounts the events of Jan. 6

As the Jan. 6 Committee continues its work, “Four Hours at the Capitol” presents a methodical, up-close-and-personal tick-tock of the insurrection, exposing what a chaotic, strange and yes, violent day ... Read more »

UK competition watchdog has music streaming in its sights

1 / 3UK competition watchdog has music streaming in its sightsFILE PHOTO: A smartphone is seen in front of a screen projection of Spotify logo, in this picture illustration By ... Read more »

Bulgaria makes virus pass mandatory for indoor venues

SOFIA, Bulgaria (AP) — Bulgaria is introducing a COVID-19 “Green Certificate” as a mandatory requirement for access to restaurants, theaters, cinemas, concert halls, gyms, clubs and shopping malls as the ... Read more »

Joburg south residents still in the dark following substation fire

© Provided by eNCA JOHANNESBURG – Large parts of Southern Johannesburg are without electricity on Tuesday. That’s after the Robertsham substation caught fire on Monday night. Areas affected include Robertsham, ... Read more »

NC's domestic violence law excludes LGBTQ survivors. That must change.

Domestic violence makes up 15% of all violent crime nationwide, but that only reflects cases that fit a specific definition, or that law enforcement is aware of. Every day countless ... Read more »

Chef banged up in Dubai for 19 months over misunderstood text message

© Provided by CapeTalk – Expat restauranteur Luke Tully received a request for a table for 10 from a contact police suspected of drug-dealing – Police in Dubai misinterpreted the ... Read more »

Full Moon October 2021: How to see ‘unique' moonrise of Hunter's Moon

© Getty Images/iStockphoto The full Moon in October 2021 is known as the Hunter’s Moon – Getty Images/iStockphoto This months full moon, known as the Hunter’s Moon, is set to ... Read more »

Another reopening delay: Back to basics and back to the dancefloor

This is an extract from a recent edition of The Journal’s coronavirus newsletter, which cuts through the noise and misinformation to give you clear, accessible facts about the coronavirus, Ireland’s ... Read more »

‘I should have stabbed him more': Wife admits knifing husband to death in police footage

© PA Penelope Jackson had called police to her home, some months prior to killing her husband, following a heated argument – PA The moment a woman admitted stabbing her ... Read more »

End of the hospital ward? NHS boss says single rooms should be post-Covid aim

© Peter Byrne/PA Wire Hospital ward UK – Peter Byrne/PA Wire Single rooms should become the “default” in hospitals, NHS England’s medical director has said, signalling an end to multi-patient ... Read more »

Boris Johnson misses House of Commons minute's silence for David Amess

© via REUTERS MPs pay tribute to Sir David Amess with a minute’s silence. Boris Johnson was missing from the front bench – via REUTERS Boris Johnson missed a minute’s ... Read more »

Judge Orders Alex Murdaugh Jailed, Demands Psychiatric Evaluation as Prosecutors Accuse Legal Scion of Stealing Millions

Disgraced South Carolina legal scion Alex Murdaugh will remain behind bars pending trial — at least for now — on charges connected to the alleged theft of millions of dollars earmarked ... Read more »

Bellator MMA Fighter Rankings: Vadim Nemkov, Corey Anderson move up pound-for-pound ranks with Grand Prix wins

Saturday night saw Bellator MMA hold the semifinals of the Light Heavyweight World Grand Prix in the two featured matches of Bellator 268. After both picking up victories, Corey Anderson ... Read more »

LeBron James is on a revenge tour to prove he's the best player in the world and it could decide the NBA season

© Kevork Djansezian/Getty Images LeBron James. Kevork Djansezian/Getty Images LeBron James might no longer be the best player in the NBA. James has laughed at those notions, even referring to ... Read more »

Fans are loving Tom Holland's smitten Instagram post about Zendaya

Tom Holland only has eyes — heart eyes, actually — for Zendaya. The Spider-Man” star couldn’t help himself when seeing a photo of his lady love on the red carpet ... Read more »

The Wellness Practices Jennifer Garner Relies On to Feel Her Best

© Provided by Shape Getty Images “I never feel or look better than right after a hard workout,” actress and IG cooking show star Jennifer Garner tells Shape. “One way ... Read more »

Aloe vera tops the skincare charts as the world's most-searched ingredient

© Anastasiia Korotkova / Getty Images Research shows that aloe vera is the world’s most searched skincare ingredient. Among the world’s most coveted natural ingredients, aloe vera is clearly ahead ... Read more »

Deepika Padukone to Katrina Kaif: 5 Celebs who showed us how to revisit the striped pantsuit style perfectly

We’ve schooled you enough on how to revamp your lockdown wardrobe and now you know back to office life shouldn’t be any less dull, rather, the one you’d pull off ... Read more »

Shilpa Shetty Kundra in a ruched dress made a striking statement to prove nothing can beat red; Yay or Nay?

It’s never too late for a hot date and so is the code to wear red. Hit every note of your romantic dream with a dress that’s all about oomph. ... Read more »

EuroMillions draw LIVE: £14m Lottery jackpot up for grabs tonight after Thunderball numbers revealed

TONIGHT'S EuroMillions draw will once again see hopeful Brits play for a chance of winning a life changing sum of money. After Friday's record £184m jackpot was claimed by a ... Read more »

Kriti Sanon is a beauty in brown in Polite Society's blazer and Deme Love's co ords; Yay or Nay?

Life always seemed comfortable with black because you know it can easily work a chic look. So, is the colour brown that’s warm to look at and not worthy of ... Read more »

Facebook admits to letting users share information on human smuggling

Facebook made the shocking admission in a letter to Arizona Attorney General Mark Brnovich. AP Photo/Bob Christie, File Facebook has admitted to allowing users “to share information about how to ... Read more »

Google to debut new Pixel 6 smartphones, subscription service

Prices for the Pixel 6 and Pixel 6 Pro will start at $599 and $899. GOOGLE/AFP via Getty Images Google on Tuesday announced the newest iteration of its smartphone — ... Read more »

Fancy Feast's Advent Calendar for Cats Has Us Feline Excited for the Holidays

© Provided by Southern Living Fancy Feast Pawsome news, y’all! Fancy Feast is letting our feline friends in on the holiday fun again this year. Fancy Feast is continuing one ... Read more »

Facebook to pay $14M to settle claims of discrimination against US workers

Facebook will pay a $14 million fine to settle claims that it discriminated against American workers. AP Facebook has agreed to pay more than $14 million to settle Trump-era claims ... Read more »

Two Creepy McDonald's Secrets We Just Learned From a Drive-Thru Employee

© Provided by Eat This, Not That! mcdonalds drive thru Even if you often roll through the McDonald’s drive-thru, you’re likely not aware of just how closely the chain is ... Read more »

Hollyoaks Chelsee Healey is unrecognisable on night out as fans are wowed by her glam makeover

HOLLYOAKS star Chelsee Healey has left fans open-mouthed after posing for a new picture during a posh night out. Chelsee, 33, looks so different from her Hollyoaks character of Goldie ... Read more »

Interpol denies receiving Red Notice alert from Syria for Lebanese party leader

© AP Samir Geagea, head of the Lebanese Forces party. Photo: AP Interpol has denied receiving a Red Notice alert for the head of the Lebanese Forces party from the ... Read more »

Voting options expand in Albuquerque, Santa Fe elections

© Provided by Associated Press FILE – In this Oct. 8, 2018, file photo, Albuquerque Mayor Tim Keller speaks during a news conference at ABQ Studios in Albuquerque, N.M. Progressive ... Read more »

M1 Pro and M1 Max: Here's how Apple is kicking Intel out of the Mac computer

Apple on Monday revealed its M1 Pro and M1 Max processors, giving us a look at its highest-end chips so far and the brains inside its redesigned MacBook Pro, which ... Read more »

AirPods 3: All the features missing from Apple's 2021 earbuds

Apple’s third-gen AirPods were a highlight of Apple’s “Unleashed” event on Monday, which also saw the debut of a redesigned MacBook Pro line that brings back multiple ports and higher-end ... Read more »

Morrisons shareholders approve £7bn takeover after bidding war

Morrisons shareholders have formally approved a £7bn takeover by US private equity firm Clayton, Dubilier & Rice (CD&R) after a bidding war. © Other Morrisons employs 110,000 people. Pic: Morrisons ... Read more »

A nurse made his entire day's wages trading crypto on his lunch break, so he quit his day job and now makes 7 figures

© STR/NurPhoto via Getty Images Bitcoin. STR/NurPhoto via Getty Images A 31-year-old quit his pediatric nursing job to trade cryptocurrencies, Bloomberg reported. Now, he makes seven figures, owns a vacation ... Read more »

Nikola allowed to proceed with $2 billion patent lawsuit against Tesla

© Image: Nikola Hydrogen trucking startup Nikola is being allowed to continue its three-year-old $2 billion patent lawsuit against Tesla. A federal judge shelved the suit earlier this month after ... Read more »

Yulo to defend title in World Championships

© The Manila Times Carlos Yulo FILE PHOTO CARLOS “Caloy” Yulo of the Philippines is all set to defend his title in men’s floor exercise on Wednesday at the 50th ... Read more »

Google's Pixel 6 is coming today, but should you buy a Pixel 3, 4 or 5 instead?

Recently, I faced a dilemma: My Google Pixel 3 XL was on its last legs. Its battery was a pale shadow of its former self. Its USB-C port failed to carry ... Read more »

These 3.5-Foot Elsa and Anna Inflatables Will Make Your ‘Frozen' Dreams Come True

Believe it or not, it’s already time to start thinking about which old holiday decorations will return and what new ones will be incorporated into your setup this year. Gemmy ... Read more »

MacBook Pro 2021 vs. MacBook Air 2020: New M1 chips complicate your laptop choice

With the new 14-and 16-inch MacBook Pro models introduced by Apple  on Monday, the entire MacBook laptop line has shifted to Apple’s own M-series chips, and away from Intel . This shift means ... Read more »

Walmart Black Friday deals 2021: Shop early discounts

The holiday shopping season is kicking off, and Walmart has just announced a full slate of Black Friday deals — including some great discounts that are already live. You can ... Read more »

This Oprah-Loved Cookware Brand Just Dropped the Prettiest New Color — & It's the Perfect Holiday Gift

If you’ve been hoping to upgrade your cookware, now’s your chance. Our Place just released a new color for their cult-classic Always Pan, and it’s too chic to pass up. The ... Read more »