Shocking new data revealed by the government shows that over 170,000 babies, children and young people across the North East would be facing cuts to the family budget this month due to the rising cost of living.
New data released from the Department for Work & Pensions showed that 171,850 children and young people were relying on Universal Credit for support in November 2021. This is an increase of over 21,000 on the year before.
Now regional child poverty campaigners have today renewed calls for social security to keep pace with inflation caused by the rising cost of energy bills, water bills, food, a hike to National Insurance and most recently petrol inflation.
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In April 2022, social security support is due to rise by 3.1% (the inflation rate as it stood in September 2021), however, inflation is currently projected to hit around 7% by April.
This means that families across the region could face a major cut to their budgets if the Government doesn’t take urgent action, and – for those in receipt of Universal Credit – this will be the second cut to their income in less than a year after the loss of £20 a week in October.
Earlier this month, the North East Child Poverty Commission joined forces with over 30 organisations across the country calling for social security support to keep pace with inflation, stating that "we are all feeling the pinch but the soaring costs of essentials will hurt low income families, whose budgets are already at breaking point."
Amanda Bailey, Director of the North East Child Poverty Commission, has now said that families in the North East are facing a 'toxic combination' of soaring living costs and an imminent increase to the rising cost of living.
"This is all combined with a real-terms cut to their income if the Government doesn’t act now to ensure social security keeps pace with inflation," said Amanda.
"And this comes after two years of a pandemic which has had a devastating impact on the financial circumstances of so many, but particularly those already on the lowest incomes.
"Whilst the Government is committed to raising living standards in the long-term, it cannot be right that over 170,000 babies, children and young people across our region are facing yet another cut to their family budgets – leaving increasing numbers of parents and carers facing absolutely impossible decisions about what more, if anything, they can cut back on."
Amanda also described the latest measures announced by the Government to loan households funds towards their bills a "sticking plaster", and said it wouldn't meet the scale of the challenge families are currently facing.
"The sticking-plaster, piecemeal measures announced by the Government so far simply don’t meet the scale of the challenge in front of us. We need action now through investment in a stronger social security system, as the most effective and dignified way of targeting support at those who need it."
For more information on how you can help the North East Child Poverty Commission visit here.
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