Fact Service March 2022

Issue 9

‘400,000 could be pulled into poverty’ in April

The Joseph Rowntree Foundation has warned that 400,000 people could be pulled into poverty by real-terms cuts to benefits in April

The charity says that its analysis reveals the consequences of the government’s decision to uprate benefits by 3.1% in April, when (CPI) inflation is forecast to hit 7%. It says that around nine million households on means-tested benefits due to low incomes, both in and out of work, will experience an average real-terms cut of £500 per year. Couple families with children in receipt of benefits due to low income will experience a real-terms cut of £720 per year, while the figure across all pensioner couples is £540 per year.

Peter Matejic, deputy director of evidence and impact at the foundation, said: “People on the lowest incomes have already experienced a decade of cuts and freezes, followed by an overnight cut of £1,000 last autumn. The decision not to uprate benefits in line with inflation represents another cut for millions of people whose incomes will now fall even further behind the cost of living.”