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Low-income families will lose ‘if the increase in benefits is not calculated according to inflation’

Gains from National Insurance (NI) cuts for low-income families could be eclipsed by inflation if the government decides to increase benefits based on wages rather than inflation.

According to a study by Child Poverty Action Group and Action for Children, a family with two children earning less than £24,700 will lose more than £600 in 2023/24 if benefits are increased according to income.

Indeed, profits rose 5.5%, while last month’s consumer price index (CPI) inflation rate is expected to be between 10 and 10.1% when announced. Wednesday.

If the government decides to increase the benefits in line with inflation, they will be increased by 10 to 10.1%, starting next April.

According to the group’s figures, a teaching assistant with an average income of £17,789 will gain just £65 from the NI reduction, but their family of two will lose £752 if their benefits do not increase in line with the NI. ‘inflation.

Among the professions that would be hardest hit by a failure to raise benefits in line with inflation are social workers, hospital porters, postal workers and street cleaners.

The group assumed inflation would be 10.1% in its calculations.

Christy J. Olson