People on eight DWP and HMRC benefits will face a huge cut in their income from April, as inflation races far beyond any rises given to state payouts.
Benefits will go up by 3.1 per cent but, by that point, inflation is forecast to hit 7 per cent, creating what is effectively a cut in income. Millions of people on means-tested benefits will see a £500 drop on average over a year, a foundation has warned.
The independent Joseph Rowntree Foundation says nine million families who receive benefits such as Universal Credit to top up their incomes will be hundreds a year worse off on average. It warns working couples on benefits who have kids will find themselves £720 out of pocket, single parents with kids will end up with £550 less and pensioner couples face an income drop of £540.
