Tories plunge 400,000 people into poverty with Spring Statement

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Four hundred thousand people could be plunged into poverty by real-terms cuts to benefits in April. Charities hoped Rishi Sunak's Spring statement on Wednesday would reinstate the £20-a-week Universal Credit uplift, which would help ease the strain of skyrocketing inflation on low-income households. Analysis from the Joseph Rowntree Foundation shows from April, around nine million families who receive benefits will be £500 worse off on average due to inflation - which rose by a 30-year-high of 6.2 per cent in the 12 months to February. Dave Innes, Head of Economics at the Joseph Rowntree Foundation, said the chancellor was acting "recklessly". “The Chancellor has asked us to judge him on his actions over the past two years, and while some of his previous choices have helped the worst off, he now risks plunging many into destitution," he said. “Make no mistake – this dire situation will leave millions in despair as a direct consequence of the Chancellor’s irresponsible choices today." Innes added people who aren't working, or can't due to disability, illness or caring responsibilities would be exposed to an increased risk of becoming "destitute". "This means they will face regularly going without absolute essentials such as food, energy, and basic hygiene products," he said. The Chancellor did, however, answer calls to raise the national insurance threshold to help middle-income families cope with the increase cost of living. Under new plans, people will keep an extra £3,000 before paying NI - the self-declared "largest-ever" tax cut announced by Sunak. The new threshold would be worth £330 to the average worker, costing £6bn, he told MPs. However, those at the lower end of the wage scale would likely not benefit from the new tax ease. Low-income families will receive a benefit payment raise of just 3.1 per cent next month, meaning with inflation hitting 6.2 per cent, claimants will actually be worse off. Related Links

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