Last week, Stephen wrote to Jeremy Hunt, the Chancellor of the Exchequer, following reports that the Government is considering freezing working-age benefits. Stephen urged the Chancellor to uprate benefits in line with inflation, noting that benefits are already at historically low levels in real terms.
The basic rate of working-age benefits are usually increased (“uprated”) every April in line with the last September’s inflation rate. However, the Government is reportedly considering committing not to increase benefits next April.
Basic working-age benefits are already at historic lows. The Joseph Rowntree Foundation estimates that Universal Credit’s standard allowance is £66 per week too low for a couple to afford essentials like food, utilities, and toiletries. If the Government freezes benefits, the Resolution Foundation predicts that 400,000 more children will grow up in poverty as a working couple with two children would lose £1,241 per year in income.
As Chair of the Work and Pensions Select Committee, Stephen wrote to the Chancellor to urge him not to freeze working-age benefits, saying that “all working-age benefits… should be uprated consistently in line with inflation”. Stephen also called for a rise in the Local Housing Allowance, which limits the support that households can receive toward their rent, noting that “freezing housing support has forced households to become homeless, imposing very large costs on local authorities.”