‘Out-of-touch’ Budget provides little relief for cost of living crisis hitting low income households

Responding to today’s Budget Statement, Bob Stronge, Chief Executive of Advice NI said:

“It will come as no surprise that people are struggling to cope with the raft of Government austerity measures including the working-age benefits freeze, cuts associated with Disability Living Allowance reassessment to Personal Independence Payment, the removal of disability additions within Employment and Support Allowance, reductions to Housing Benefit and Support for Mortgage Interest and the impact on low paid households of the rollout of the less generous Universal Credit system.

“With wages lagging behind rising inflation, the issue of rising prices in particular regarding food and clothing is causing a real cost of living crisis for many low income households.

“Whilst the Universal Credit measures including the removal of the Universal Credit 7 day waiting period is to be welcomed, it comes nowhere near addressing the Universal Credit cuts amounting to £4.7 billion imposed by George Osborne in the Summer Budget 2015. The remarkable comments by the Chancellor earlier this week that ‘there is no unemployment’ and the content of this Budget only serves to reinforce the view that the Government is out of touch with no grasp of the reality facing low income families who are struggling to make ends meet.”

Advice NI set out a number of areas where urgent action is needed including:

• Unfreeze the uprating of working age in work and out of work benefits;
• Help people in work by increasing the Universal Credit “work allowances” and reduce the “taper”;
• Scrap the benefit cap and the limit to the child element of tax credits and Universal Credit to two children for new claims and births;
• Help the self-employed by removing the artificial ‘Minimum Income Floor’ within Universal Credit;
• Roll out the real living wage as set by the Living Wage Foundation;
• Tackle food poverty by addressing the real causes and respecting the dignity of recipients;

There is an independent welfare changes Helpline for anyone concerned about changes to their benefits or any other welfare reform issue, available on 0808 802 0020.
 
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