Beyond the £20 uplift

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The UK is facing a cost of living crisis which is set to sharpen significantly for those on the lowest incomes over the next few months. Millions are going to be hit by a triple whammy of price increases for food and energy bills, welfare cuts and tax rises. In total, low-income families will see a squeeze of more than £1,700 per year by April.

By far the most important driver of this squeeze is the £1,040 per year cut to universal credit (UC) due at the end of September and set to impact people’s wallets over the course of October and beyond. The UK safety net is already one of the weakest among advanced economies and in the UK’s own post-war history. Yet this is about to be compounded by the largest overnight cut to welfare in 70 years, hitting families disproportionately in the North East, West Midlands, and Yorkshire and the Humber.