Universal Credit claimants with children could lose £1,000 a year in benefits, a think tank has warned.
The Department for Work and Pensions (DWP) is being warned low-income families with children will be worse off if the Government chooses to increase benefits in line with earnings instead of inflation. A decision on benefit increases has yet to be made, but new Chancellor Jeremy Hunt has so far refused to rule out uprating on earnings, or other economic figures.
The Resolution Foundation has said the decision would amount to a real-terms cut of £1,000 a year for families on Universal Credit.