Family Lives response to Welfare Benefits Uprating Bill

“We know that many families we work with are under increasing financial pressure and struggling to make ends meet.  As such, we urge the government to consider revising the Welfare Benefits Uprating Bill.  This bill, if implemented will mean that welfare benefits (including tax credits, statutory maternity pay and maternity allowance, alongside income support/employment and support allowance) will only be ‘uprated’ by 1% year on year from 2014.  The most conservative estimates of inflation put it at about 2- 2.5% - this means that every year that inflation goes up, the amount of cash received will be worth less and over time this will have significant implications for the majority of families.  Calculations by major trade unions estimate that many families will lose up to £3000 by 2015.  If VAT increases are added into the calculation, families will lose around £5,000 by 2015 due to these cuts and tax increases.”

Jeremy Todd, Family Lives Chief Executive