interactive investor responds to DWP abstract of benefit rates.
The Department for Work and Pensions has today published its latest ‘Abstract of benefit rates’, including information on benefit uprating the value of benefits compared to prices and earnings.
Commenting, Myron Jobson, Personal Finance Campaigner, interactive investor, says: “The rising cost of living has wiped out the modest uptick to benefits. This imbalance between the rate of inflation and the uprating of benefits is set to worsen in spring, with the Bank of England predicting inflation could peak close to 6%, while energy bills are set to rise by as much as 50%. Planned tax rises as well as the spectre of higher inflation and interest rates mean that the average take home pay is likely to fall this year, hitting the poorest in society most.
“The way in which we increase benefits is not befitting of the cost-of-living crisis we now face, and the current course of direction worsens the squeeze on Britain’s lowest income families. Calls for a more generous uprating to reflect the difficulties many on benefits now face have become more audible. The benefits freeze and the cap had meant years of struggling by on less, and the removal of the £20 uplift to Universal Credit uplift in October, which offered some sort of reprieve has had a profound effect on many low-income earners who have seen the cost of everyday essentials soar.
“It is important now more than ever to pay extra attention to your financial well-being and consider what protective steps you can take now to avoid money worries later. If you are struggling to stay financial afloat, make sure you’re getting all the support you’re entitled to.”
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