Families face plunge into ‘deep poverty’

Half a million people could be plunged into "deep poverty" without extra support because of the ongoing "economic storm" they face, a new report warns.

M a ny f a m i l i e s h ave a l - ready cut back on food and other essentials or fallen behind on rent and other bills, said the Joseph Rowntree Foundation (JRF).

Ministers are being urged to make a temporary £20-aweek increase to Universal Credit and Working Tax Credit permanent, as well as extending this support to those excluded on legacy benefits.

The foundation said that its analysis suggested that if this lifeline is removed as planned in April 2021, it will cause a "significant shock" to the incomes of those who are newly unemployed and families who are already struggling.

Around 16million people are at risk of experiencing a drop of £1,040 a year in their support, and 700,000 are likely to be pulled into poverty in the spring unless action is taken, JRF warned.

Without this support, half a million people are likely to be plunged into deep poverty, its report said.

JRF acting director Helen Barnard said: "The additional £20 per week is a vital lifeline for many people on low incomes who are struggling to get by.

"We cannot afford to whip this lifeline away at precisely the time when it's needed most.

"T h e Autu m n B u d get o f fe r s a n o p p o r tu n i ty to strengthen social security by making the increase to Universal Credit permanent and extending it to those on legacy benefits who are largely sick or disabled people and carers, who have wrongly been left out."