You and Yours - Call You and Yours: Will the benefit cuts force people into work or send more people into pove…
Will the benefit cuts force people into work, or send more people into poverty? Call Julian Worricker.
Call You and Yours - Will the benefit cuts force people into work or send more people into poverty?
The government wants a 1% cap on rises in most working-age benefits and tax credits over the next three years. Labour says the move will hit hard-working people and is the wrong priority.
There are around 2.8 million households of working age without jobs and soon 2.5 million will see their entitlements reduced in real terms. Of 14.1 million working-age households with someone in work, around 7 million will see their entitlements cut compared with what they might have expected.
Those with the lowest incomes will be affected the most, with the second-lowest 10th of the UK population hit hardest in cash terms, with an average drop of £150 per year compared to what they might have expected.
The cap would apply to working-age benefits including jobseeker's allowance, maternity and paternity pay, child and working tax credits and elements of housing benefit. It would not apply to disability benefits, carer's allowance, nor to the state pension or pension credit. The state pension will increase by 2.5% in April.
Are you affected by these cuts? Are you going to be worse off as a result? Or do you think the Government has got it right and it's long overdue?
03700 100 444 is the number or you can e-mail via the Radio 4 website or text us on 84844.
Presenter: Julian Worricker Producer: Maire Devine.