The UK Government has been urged to bring forward increases to benefits rather than wait until next April to ensure the poorest families do not go hungry or cold this winter. Campaigners have warned leaders not to “abandon children when they need support the most”, with ministers facing calls to stick by the former chancellor’s pledge to uprate welfare payments in line with inflation.
In May, Rishi Sunak said benefits would be uprated by this September’s Consumer Prices Index (CPI), subject to a review by the Work and Pensions Secretary, Chloe Smith. Figures published on Wednesday by the Office for National Statistics (ONS) show this to be 10.1%.
The UK Government has so far not ruled out taking a different course, with reports suggesting benefits could instead go up in line with the average increase in workers’ pay (5.5%). New Chancellor Jeremy Hunt said he will prioritise help for the vulnerable after the inflation increase was revealed.
The Joseph Rowntree Foundation said Mr Hunt should confirm if benefits will be uprated in line with Wednesday’s CPI figure - and the UK Government should bring increases forward to help people over winter.
Chief economist Rebecca McDonald said: “It is morally indefensible that the Government should still be considering leaving people with even less ability to pay for what they need, when their own party pledged to make sure the value of benefits keeps up with prices only months ago.
“The Chancellor has it in his power to assuage the fears of millions, by confirming today that benefits will be uprated in full and ahead of April.”
Alison Garnham, chief executive of the Child Poverty Action Group, said it is critical that benefits rise in line with inflation. She added that “Government must not abandon children when they need support the most.”
The UK Government did not say, when asked, when its decision will be announced. Former chancellor Kwasi Kwarteng previously said it would be announced during his medium-term fiscal plan on October 31 - but this arrangement has not been confirmed.
Jack Leslie, senior economist at the Resolution Foundation, said family incomes will continue to “fall sharply” next year.
On uprating benefits and pensions, he said: “While the significant Treasury savings may look tempting in the context of its attempts to fill its fiscal hole, the cost to 10 million working-age families and almost every pensioner would be huge amid the deepest cost-of-living crisis for half a century.”
Disability charities said a decision not to uprate benefits by inflation would be “disastrous” for struggling households.
James Taylor, director of strategy at disability equality charity Scope, said: “The UK Government must not abandon disabled people at this critical time.”
The chairman of the Work and Pensions Committee, Sir Stephen Timms MP, who has written to Mr Hunt asking to meet before the end of the month, said the approach to benefits “remains shrouded in uncertainty”.
He said: “With the decision this week to end the energy price guarantee after just six months adding to the unpredictability about the future, it is now more urgent than ever for the Chancellor to give some much-needed reassurance to people by guaranteeing that benefits will rise with inflation as previously pledged.”
You can read the letter to Chancellor Jeremy Hunt, here.
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