Poverty looms for 600,000 Brits after Spring Budget as benefits fall behind inflation and tax jumps
Around 600,000 people will be pulled into poverty, of which around a quarter are children, according to new data shared with City PM this morning.
In fact, families in poverty will be £446 per year worse off in 2022-23 compared to if benefits had been uprated in line with current inflation levels.
Households in poverty who are not in work – those who are either job seeking or unable to work due to ill health, disability or caring responsibilities – are particularly harshly affected by the changes.
The Chancellor’s failure to increase benefits in line with current inflation levels, along with the 1.25 per cent increase in National Insurance and change to the earnings threshold at which it is paid, was analysed by the independent Joseph Rowntree Foundation.
| Family type | Impact of real-term cut to benefits: | Impact of 1.25% increase in NICs | Impact of increase in NICs threshold | Overall annual impact: |
| Households in poverty (including pensioners) | -£470 | -£31 | £56 | -£446 |
| Working-age households in poverty (all) | -£390 | -£40 | £80 | -£350 |
| In-work working-age households in poverty | -£335 | -£75 | £140 | -£270 |
| Non-working working-age households in poverty | -£465 | £0 | £0 | -£465 |
| Middle-income households (including pensioners) | -£390 | -£168 | £270 | -£288 |
| Middle-income working-age households | -£190 | -£250 | +£400 | -£40 |