The Tories’ cost-of-living assist for the poorest households on Universal Credit have been branded “survival payments”.
It comes because the Department for Work and Pensions second funds of round £300 end touchdown within the accounts of eligible households this weekend.
A 3rd and ultimate cost is due within the spring of 2024 however Save the Children UK warns the cash is simply “resetting the miserable status quo”. The charity says the assist – designed to alleviate the strain of hovering costs for probably the most weak – is being spent on money owed and overdue vitality payments.
Mum-of-one, Becka, from Norfolk, advised Save the Children UK: “It will go on rent arrears to get me up to date, that’s it.” Mother-of-four Tasha, added: “Won’t even take edge of things. Mine will go on childcare and electric.”
Head of UK youngster poverty Becca Lyon stated: “These are now just ‘survival payments'”. “The grim reality of the cost-of-living crisis on families meant the money arriving in bank accounts these past few weeks barely made a difference. It’s gone on rent arrears, paying off mounting debts or covering the basics like children’s school dinners and transport costs.
This is not a luxury payment or providing families with a treat, it’s going on the absolute bare minimum to stop families from falling into destitution.”
The charity is calling on the Chancellor Jeremy Hunt not to impose a real-terms cut in benefits ahead of next week’s Autumn Statement. Instead of hiking the benefit in line with September’s rate of inflation – 6.7% – Mr Hunt is looking at using October’s lower rate of 4.7% to free up cash for tax cuts.
At the same time it has also been reported the Tories are considering a cut in inheritance tax for some of the country’s wealthiest households.
Ms Lyon added: “As we head into Christmas, 4.2 million children remain in poverty and these payments, while well meaning, aren’t even close to making their lives better. Increasing benefits in line with inflation at September’s rate of 6.7 per cent at the Autumn Statement should be a priority for the Chancellor. To raise it by anything less would be cruel considering the scale of the crisis.”
Joseph Howes, Chair of the End Child Poverty Coalition and CEO of Buttle UK added: “According to the government’s own data there are 4.2 million children living in poverty in the UK, and yet this government has no plan in place to reduce this alarmingly high figure.
“To not increase benefit payments in line with inflation would push these families into even further hardship. We have spoken with families currently unable to afford petrol to drive their kids to school, parents who skip meals because they cannot afford to eat, and families who rely on loans to pay their gas and electricity bills. “This cannot continue, these families need proper support, and the government must ensure these families are able to do more than just survive.” The DWP has been contacted for remark.