The most deprived areas of Great Britain will also be the ones hit hardest by the coalition's policy of cutting benefits and tax credits, according to a new analysis from the Centre for Regional, Economic and Social Research in Sheffield.
The study does not cover the new universal credit system, which is not considered likely to have a major impact before 2018.
People on low incomes needing emergency financial help are likely to be faced with a 'postcode lottery' of provision following the abolition of the Social Fund, according to a new study. The Centre for Responsible Credit warns some people will be forced to turn to commercial high-cost lenders as a result.
The DWP-administered Social Fund – which provides community care grants, crisis loans for living expenses and budgeting loans – is being abolished from 1 April 2013, and the budget for the Fund is being devolved to local areas. Local councils in England, together with the Welsh and Scottish Governments, are now free to devise replacement schemes of their own using the money.
440,000 families are being affected by multiple benefit cuts being introduced by the coalition government, according to an analysis conducted by the New Policy Institute. For each of the families concerned this will mean a total income cut of £16.90 a week.
The analysis looks at the combined effect of four major changes to social security benefits from April 2013. Three of these involve cuts in absolute terms – the 'bedroom tax' affecting housing benefit claimants in social housing deemed to have spare bedrooms; the replacement of council tax benefit by localised council tax support schemes; and the overall annual benefit cap on households. The fourth change – the below-inflation uprating of out-of-work benefits and some elements of tax credits – involves benefit cuts in real terms.
A series of major changes to the tax and benefits systems came into effect from April 2013, accompanied by disputes over their purpose and likely impact. The Chancellor George Osborne described them as being about backing 'hard working people who want to get on in life'.
Disabled people risk losing a total of £28.3 billion in income support by 2018 as a result of benefit cuts introduced by the coalition government, according to a new analysis from the Demos think tank. As many as 3.7 million disabled people overall will be affected.
An extra 200,000 children will be pushed into absolute poverty by the coalition's policy of capping annual increases in many benefits and tax credits, according to an estimate released by the Department for Work and Pensions (DWP). The estimate was uncovered by a freedom of information request submitted by the Child Poverty Action Group.
Defining absolute poverty as living on less than 60 per cent of median disposable household income as at 2010-11, uprated for inflation, the DWP gives a 'broad estimate' that around 200,000 extra children will be living in absolute poverty by the end of 2015-16 (the last year of the three-year cap on annual increases in most working-age benefits/tax credits).
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.