Everyone on Universal Credit is being warned of a £77 a month income deficit from October. The household cash deficit will come into effect despite the Government's cost of living support, say campaigners.
The Department or Work and Pensions (DWP) is giving £650 to more than eight million families on means-tested benefits, plus £150 for those on disability benefits and £300 extra to pensioners who get the Winter Fuel Payment. Other financial aid will come from councils and energy providers, reports BirminghamLive reports.
However, campaigners say it will not be enough to keep up with rising prices and have asked the DWP to pause all Universal Credit deductions while inflation is still soaring. Suspending deductions from Universal Credit would help plug the gap caused by the shortfall between the Government's support measures and wider price increases for over a million low-income households, according to research by StepChange Debt Charity.