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Families STILL forced to choose between heating and eating despite benefits freeze ending, warns charity


FAMILIES will still be forced to choose between heating and eating despite a benefits freeze expected to end, a charity has warned.

The majority of working age benefits have been frozen at the 2015/16 levels, meaning they haven’t risen in line with inflation for four years.

 Citizens Advice claims that ending a benefits freeze isn't enough

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Citizens Advice claims that ending a benefits freeze isn’t enoughCredit: Getty Images – Getty

The government is expected to announce an increase to welfare payments later today.

It will see income-related benefits, such as housing benefit and job seekers allowance, go up by 1.7 percent from April in line with Retail Price Index (RPI).

But research by Citizens Advice has found that four in 10 households struggling with debt still won’t have enough to cover their bills.

The charity expects this shortfall to continue through to at least 2024, even if benefits were to rise again before then.

Universal Credit changes in 2020

HERE’s how April’s changes will affect your Universal Credit payments: 

How much will payments go up by?

Payments are set to rise by 1.7 per cent, which is inline with inflation.

What that means in terms of the amount of cash you receive depends entirely on how much you get every month.

For example, someone who gets £100 a month will see the payment rise by £1.70.

The state pension will rise by 3.9 per cent. This is because it’s calculated using the so-called “triple lock” arrangement, which means it rises by the greater of earnings, inflation, or 2.5 per cent.

In reality, this will see the new state pension rise by up to £6.60 a week from a maximum of £168.60 a week to £175.20 a week at the start of the 2020/21 financial year.

What payments are affected by the rise?

Both legacy payments and Universal Credit will be affect by the rise.

These include job seeker’s allowance, employment and support allowance, income support, housing benefit, child tax credits, working tax credits and child benefit.

In the first five months of the current financial year, 40 per cent of the people the charity helped with debt who are also claiming income-related benefits didn’t have enough to cover their living costs.

This figure has increased by a quarter since the freeze came into effect.

Dame Gillian Guy, chief executive of Citizens Advice, said that increasing benefits isn’t enough to solve the shortfall.

She said: “The benefits system was created to support people in times of need.

“The government should show it’s serious about meeting this ambition by properly investing in working-age benefits, and making sure fewer families are left in a downward spiral with no way to pay their bills.”

The benefits freeze was due to end in 2020 but ministers have now confirmed that it won’t be renewed.

A hike in welfare payments would mean that someone who receives £500 in benefits will see them increase to £508.50.

While the boost is welcome, the Resolution Foundation has warned that it’s not enough to off-set the lasting effects of the six per cent drop real term value since 2015.

It found that a family of four in the poorest 50 per cent of households in the UK are actually £580 a year worse off.

Citizens Advice is calling for the government to increase income-related benefits by the Consumer Prices Index (CPI) – which is calculated without taking into account the cost of your home – plus two per cent for the next four years to make sure families don’t go without.

It also wants to change the way the Local Housing Allowance – what’s used to determine housing benefits for private tenants – is calculated.

A spokesperson for the Department for Work and Pensions said: “From April benefit payments will rise for more than 10 million people across the UK.

“We know some families need more support, which is why we continue to spend over £95 billion a year on working-age benefits.”

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