Benefits Freeze Must End as Inflation Jumps to 2.9%

An urgent re-think of the current four-year freeze in benefits is needed to protect struggling families from further damage as inflation jumps to 2.9% -  a four-year high -  Child Poverty Action Group warns.

Chief Executive of the charity Alison Garnham said:

“Unless there’s an urgent re-think of the current freeze on benefits, the living standards of ordinary families will slip and slide downwards with serious consequences, particularly for children.   Families are saying they can’t manage.  They need some leeway.  Now is the time to ensure that benefits for working and non-working families once again reflect their needs and so rise with inflation.

“The failure to uprate benefits in line with inflation is the single biggest driver behind child poverty rising to 4 million and why it’s set to rise to over 5 million by the end of the new parliament.”

ABC Note:  The pound has been falling because of BREXIT and as such inflation is rising. The UK could go into recession in the next two years until the uncertainty is resolved. The election result has certainly compounded matters.

It is an ill wind that blows no good and higher inflation leads to higher wages and shrinks debt in relation. 

Stephen Martin, director general of the Institute of Directors, said on Monday that it’s “hard to overstate what a dramatic impact the current political uncertainty is having on business leaders, and the consequences could – if not addressed immediately – be disastrous for the UK economy”.