Nine million low income households face pay cut of up to £720 this year
NINE million families on low incomes will be hit by a pay cut of up to £720 this year as inflation bites.
Families claiming benefits will be hundreds of pounds short because rates have not been increased to be in line with soaring inflation, according to the Joseph Rowntree Foundation.
The government announced that Brits claiming Universal Credit, child benefit, state pension and more will see payments rise by 3.1% in April.
That's in line with the rate of inflation recorded in September last year, which was 3.1%.
But inflation has soared since this point - and higher inflation means you'll have to spend more, as the cost of goods will go up.
Experts predict inflation will rise further, hitting 7% in spring - when the new benefit rates roll in.
But because the new benefit rates have not been matched to this figure, cash-strapped families will effectively see a "pay cut" of up to £750, the organisation said.
The figure is based on costs for a couple with children. Meanwhile, retired couples are set to be £540 worse off a year.
Most read in Money
The foundation said the new benefit rates for April were "inadequate" and will leave families "deeply concerned about how they will manage to stay afloat".
That's because millions of households are battling eye-watering price hikes to bills including energy, fuel, food and more.
Brits will have to dig deep to find another £693 for their energy bills after a new price cap was confirmed earlier this month, which will rise to £1,971 a year in April.
Fuel prices are soaring too, today reaching a record high with petrol at 149.43p a litre and diesel at 152.83p, according to the AA.
Meanwhile, the price of a weekly grocery shop is set to surge by £180 a year as inflation rockets.
JRF deputy director of evidence and impact Peter Matejic said: "The decision not to uprate benefits in line with inflation represents another cut for millions of people whose incomes will now fall even further behind the cost of living.
“There can be no justification for this. Our social security system should protect people from harm, not put them in danger.
"The government must change course and ensure that benefit levels reflect the higher rate of inflation we are all now experiencing.
"There is no doubt that a failure to do so will leave more people in our society unable to meet their most basic needs.”
Help if you are struggling
If you're struggling to pay your way, then there are a number of things you can do to get help.
Struggling families can apply for cash and grants for furniture, bills and food up to £1,000 under the welfare assistance scheme.
Grants are available through your local council - which will decide whether you’re eligible and what help is available. Some councils don’t have a scheme though.
While the £500 million Household Support Fund can also help with household essentials.
There is help you can get to pay for rising energy bills as well.
Cold weather payments help cover the cost of heating homes when the temperature drops.
READ MORE SUN STORIES
If the temperature falls to zero or below for seven days in a row, you can get £25.
While the winter fuel discount can get you up to £300 off your bills depending on your age, whether you receive benefits, and if you live alone.
We pay for your stories!
Do you have a story for The Sun Online Money team?
Email us at [email protected]