A new analysis has shown that tax and benefit changes under the coalition government, combined with low wage growth, will leave 690,000 more children living below the minimum income standard by 2015.
The analysis was commissioned by the TUC from the independent Landman Economics consultancy. It examines the current and future impact of various tax and benefit changes since 2010 – including universal credit, direct and indirect tax changes and real wage growth – on the incomes of different households and family types.
43 bishops of the Church of England have signed a letter to the Sunday Telegraph warning that benefits cuts being proposed by the coalition will have a 'deeply disproportionate' effect on children.
The letter was sent ahead of the House of Lords debate on the Welfare Benefits Up-rating Bill, which will cap annual increases in many benefits at one per cent for the next three years, regardless of inflation.
The negative effects of proposed benefit changes on people in Northern Ireland have been highlighted in a report from an Assembly committee.
Committee members express concerns about the potential negative effect of the UK Welfare Reform Bill on vulnerable groups and individuals. Their concerns focus on four areas in particular:
More people want to see higher benefits spending than the number wanting further cuts, according to a new opinion poll reported in New Statesman.
A ComRes/ITV News poll asked people whether they want the government to increase or decrease spending, in a range of different areas, between now and 2015. 43 per cent of people want benefits spending ('welfare') to be increased and 29 per cent want it frozen – meaning that 72 per cent are opposed to further cuts, with just 28 per cent in favour. Welfare is the fourth most popular area for government spending, though well behind the NHS, education and the police.
ComRes interviewed 2,050 British adults online during 1–3 February 2013.
People in Wales will suffer annual benefit cuts totalling at least £590 million by 2014-15, according to a study commissioned by the Welsh Government. Families with children will lose out the most, the analysis concludes, along with those on low-to-middle incomes.
Some groups of claimants should get their benefits in the form of prepaid cards, a think-tank report has argued. The Demos report says this would increase financial inclusion, encourage 'responsible money management', and reward savings behaviour.
The UK government's programme of benefits cuts is a 'toxic mix' that will cause a substantial increase in poverty in Scotland, according to a new report. As well as looking at the impact of the cuts, the report attempts to identify ways in which the worst effects can be lessened.
MPs have voted to approve the controversial capping of benefit increases over the next three years. The Welfare Benefits Up-Rating Bill, which has been given a second reading in Parliament, provides for an increase of just 1 per cent for most working-age benefits, child benefit and certain tax credit elements in 2014-15 and 2015-16, rather than being uprated in line with inflation (in addition to similar arrangements already announced for 2013-14). Carers' benefits and certain disability-related benefits will be exempt, along with pensions.
by Stewart Lansley
The coalition government’s proposal to strip nearly £4 billion from the welfare bill by capping increases in benefit levels to 1%, well below inflation, marks another shift towards a welfare system that is no longer fit for its fundamental purpose of protecting those in need.
The move is a significant departure in the post-war history of welfare in the UK and is, indeed, unprecedented since the war. The last deliberate political move to lower the real incomes of the poorest members of society was more than eighty years ago in 1931. Then attempts to cut benefits for the unemployed split the cabinet and led to the collapse of the Labour government under Ramsey MacDonald. The uprating bill, before Parliament on January 8, 2013, raises a vital question: why should the poor pay the price for the failure of Britain’s economic model to deliver enough jobs and decent wages.
Trade unions are warning the government not to count on continuing voter support for capping benefit rises. A new poll commissioned by the TUC has found that those people least able to give accurate answers to basic questions about benefits are the most likely to back cuts. Once people are made aware of the full facts, support for cuts drops significantly.
The YouGov poll found widespread ignorance about benefits: