Poor families hit as UK inflation rises to 1% – as it happened
Inflation to Hit Benefit Claimants Hard.
Government’s freeze on in-work benefits means many families will suffer as the cost of living rises.
The Institute for Fiscal Studies (IFS) states,
In the July 2015 Budget the Government announced that, as part of its attempt to cut annual social security spending by £12 billion, most working-age benefit and tax credit rates would be frozen in cash terms until March 2020.
This policy represented a significant takeaway from a large number of working age households. But it also represented a shifting of risk from the Government to benefit recipients. Previously, higher inflation was a risk to the public finances, increasing cash spending on benefits. Now the risk is borne by low-income households: unless policy changes higher inflation will reduce their real incomes.
UK Inflation Rises To Two-Year High Of 1.0% As Sterling Turmoil Hits Britain’s Poor
Article 50 hasn’t even been triggered yet.
New figures from the ONS show that inflation in prices is now at the highest point for two years amid the falling value of Sterling following the Brexit vote.
And rising inflation will not only affect prices in supermarkets and high streets, but reduce the income of Britain’s poorest families, according to the Institute for Fiscal Studies.
Left Foot Forward.
Since the British people ‘took back control’ and stuck it to the elites on June 23, the pound has fallen to a 31 year low. While the Brexit press has tried to spin this as a good thing, the facts tell a different story.
As the Institute for Fiscal Studies (IFS) finds today, a weak pound means rising prices, which would be bad enough for low-income people. But since we have a Tory government, this inflation comes amid a freeze on benefits and tax credits, as part a £12 billion cut to social security spending.
This means 11.5 million families will see an even greater real terms cut to their incomes as a result of sterling’s nose dive. Thanks Brexit!
We know what this will mean when we go to the supermarket and do our shopping.
Already we have to watch what we spend, what we buy, wait for the cheap bread at the end of the day, or look in the reduced sections.
And that’s without mentioning our bills.
This is going to get worse, a lot worse.
The benefits freeze should be ended now!