PIP, Universal Credit, Pension Credit: Millions will be up to £700 worse off as inflation rises

Millions of people who receive state benefits including Universal Credit, Personal Independence Payments (PIPs) or Pension Credit are set to lose hundreds of pounds due to inflation.

Campaigners warn that more than 24 million people will be affected and have urged the government to take action to prevent families from falling into poverty.

State benefits are set to rise by 3.1% in April, but campaigners believe many will be even worse off at £700 a year if inflation hits 7% this year, as some economists believe, reports the ‘Express.

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Millions of families and pensioners rely on Child Tax Credit, Housing Benefit, Income Support, Income-Based Jobseeker’s Allowance, Employment and Support Allowance income-related, in-work tax credit and pension credit to supplement their income.

These payments are made by the Department for Work and Pensions (DWP) and HM Revenue and Customs (HMRC) to help people on low incomes to make ends meet.

The Joseph Rowntree Foundation, an organization that promotes social change through research, policy and practice, said: “For low-income families, a reduction in the value of benefit levels that are already inadequate could not happen. at a worse time.

The spokesperson continued: “Already, too many families are depriving themselves of the essentials. The price of food and other basic items is rising, and the energy price cap could push the average bill towards around £2,000 from April, leaving many families deeply worried about how they are doing. will manage to stay afloat.

A working couple on benefits who have children will experience a drop in income of £720, which equates to £60 a month, the Foundation said.

Pensioners who claim to be part of a couple will lose £540 over the course of a year – something many cannot afford without.

A person on benefits with children will be £550 a year worse off.

A working couple with children will see their income drop by £720.

Retired couples will pay £540 out of pocket. A single pensioner will lose £390.

The foundation is also concerned that in April people will find it really difficult to put food on the table, especially amid rising energy bills.

It urges the government to immediately increase benefits in line with the Bank of England’s February 2022 Monetary Policy Report forecast of 7% inflation.

A spokesperson for the Department for Work and Pensions said: ‘We know this has been a difficult time for many people which is why we are providing support worth around £12billion this fiscal year and the next, to help households meet the cost of living. . This includes putting an average of £1,000 more a year in the pockets of working families via changes to Universal Credit and raising the minimum wage by more than £1,000 a year for full-time workers.

Latest figures from the Department for Work and Pensions (DWP) show that more than 24 million people are receiving State Pension, Universal Credit, Housing Benefit, Employment Support Benefit, Pension Credit , income support and jobseeker’s allowance.

Meanwhile, £15billion is lost each year in unclaimed benefits, according to charity Turn2Us. His research shows that millions of people are missing thousands of pounds every year. A spokesperson said now was not the time to suffer in silence.

To check eligibility for state benefits, people can use the benefits calculator on the Turn2Us website.

Turn2us also has a grant finder, which people can use to check if they are able to apply for charitable grants – which don’t have to be repaid.

To find out what might be available to them, people simply need to answer a few questions such as their age and zip code.

Sarah McLoughlin, Head of National Grants Programs at Turn2us, said: “For anyone struggling with their money, receiving a charity grant can be an important step in helping people get back on their feet financially. There are thousands of charities in the UK that grant millions of pounds to people every year. Grants can help you pay for expenses such as buying a new refrigerator, food for your family, or paying unpaid bills. They are a great source of relief for people who may be struggling financially – as they never need to be repaid.

“We urge anyone to use the Turn2us grant finder tool to see if they are eligible for a grant in order to prevent financial insecurity from turning into a long-term financial crisis.”

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