‘Benefits need to match inflation...’

Potential blow for 40,000 households across the region

MORE than 40,000 households are set to lose out if the government increases benefits at the same rate as wages rather than inflation, shock new figures have revealed.

Later this month, new Chancellor Jeremy Hunt is set to reveal his plan to fund the tax cuts announced in the former Chancellor Kwasi Kwarteng’s controversial ‘mini budget’.

It’s set to include a decision on whether benefits will be increased by the same rate as wages.

Inflation soared to ten per cent in the year to August, but at the current rate of 5.4 per cent it would amount to a real-terms cut.

The worst-hit area of Barnsley is the Wentworth and Dearne constituency, led by MP John Healey.

New analysis by the Joseph Rowntree Foundation charity shows that around 31 per cent of working-age families receiving means-tested support in the constituency – 12,471 households, will be impacted if benefits were only to rise in line with wages.

The planned increase would also apply to child benefits, which are claimed on behalf of more than 18,000 children in the area.

Stephanie Peacock’s Barnsley East constituency will also see more than 12,000 households impacted – as well as more than 17,335 children whose parents claim benefits on their behalf.

Around 29 per cent of working-age families in Barnsley Central are set to be affected by the cut. Whilst households in Penistone and Stocksbridge will be the least affected by the new plans.

Only a fifth of families will be impacted – 6,230 households – as well as 12,835 residents who claim child benefits.

Across the UK, there are 193 Conservative constituencies where a fifth or more of families are set to lose out if benefits only rise by wages, including Prime Minister Liz Truss’ seat of South West Norfolk.

The same is true of 180 Labour seats, and 34 held by the Scottish National Party.

Katie Schmuecker, principal advisor for the charity behind the analysis, said: “We know millions of families have already gone without the essentials this year, missing meals, not cooking hot food or having hot showers.

“We know people have gone into arrears on their bills or taking on debt to pay for the basics. It is unconscionable that the government should be considering cutting their ability to pay for what they need.”

Research by the Resolution Foundation found that some working parents on Universal Credit could lose out by almost £1,000 if support was only raised at the same rates of wages.

A spokesperson for the Department of Work and Pensions added: “The Secretary of State commences her statutory annual review of benefits and State Pensions from late October using the most recent prices and earnings indices available.

“We are committed to looking after the most vulnerable which is why we’ve delivered at least £1,200 of support to families this winter, while also saving households an average of £1,000 a year through our Energy Price Guarantee.

“This support is on top of the annual working-age benefits bill, which is over £87bn.”