Government support for low-income households amid the cost-of-living crisis falls short of offsetting the losses they face, with some families up to £1,600 worse off a year, a report has found.
The additional £1,200 offered to the poorest in society this year will fail to compensate for three major blows to their income from October 2021 to October 2022, the analysis suggests. The loss of the £20-a-week benefits uplift, an annual uprating out of line with inflation forecasts, and a jump in the energy cap will mean the worst-off families cannot bridge the gap, it says.
The report, commissioned by former prime minister Gordon Brown, found that the largest families would face the biggest losses. This is because the flat-rate payments offered by the Government fail to take into account the different sizes and needs of different households, it says.
