The UK Women’s Budget Group today releases analysis by Howard Reed, Landman Economics, showing how different family types are affected by the measures in the Welfare Benefits Up-rating Bill, which has its second reading tomorrow, January 8th.
‘ Capping the up-rating of most working age benefits to 1% is clearly regressive. It will affect all households except the richest, but it hits those with the lowest incomes the most. The poorest 10 % of households will, on average, lose 1.9% of their weekly income, and the second poorest 10% will lose 1.6%. The richest 10 % lose nothing and the second richest 10% lose only 0.1 %.
Families with children but no earner (both lone parents and couples) are particularly hard hit and will lose on average 3.8% of their weekly income .
Women lone parents will lose more than other single adult households : on average they will lose 2.4 % of their weekly income.
Among families with earners, those with only a female earner lose the
most: on average 0.6% compared to 0.3 % for families with only male earners.’
Diane Elson, Chair of the UK Women’s Budget Group said:
‘This cut in the real value of working age benefits hits the poorest mothers hardest and they will struggle to feed their families as food prices and energy prices continue to rise. We can expect to see more and more of them having to rely on food banks.’
A copy of the research can be accessed here: http://wbg.org.uk/pdfs/Distributional_Impacts_Welfare_Uprating_Bill%5B1%5D.pdf