Tag: social security

Universal Credit change ‘brings £420 boost to over a million households’

More than one million households struggling with debt will get to keep an average £420 more of their benefits each year, under a change to Universal Credit coming into force today

  • Around 1.2 million of the poorest households – including 700,000 with children – will keep an extra £420 a year on average, due to Universal Credit change.
  • New Fair Repayment Rate – which comes into force today – caps Universal Credit deductions at 15%, down from 25%.
  • Comes as part of the Government’s Plan for Change to make working people better off by helping them into jobs and extending support for low-income families.

More than one million households struggling with debt will get to keep an average £420 more of their benefits each year, under a change to Universal Credit coming into force today [Wednesday 30 April 2025].

The Fair Repayment Rate places a limit on how much people in debt can have taken off their benefits to pay what they owe. The maximum amount that can be taken from someone’s Universal Credit standard allowance payment to repay debt has been 25% – but from today this is reduced to 15%.

This will mean an average £420 extra a year for 1.2 million of the poorest households, including 700,000 households with children, while helping people to pay down their debts in a sustainable way.

It forms part of the Government’s Plan for Change to put more money into people’s pockets and boost living standards and marks the Government’s first step in a wider review of Universal Credit to ensure it is still doing its job.

The Fair Repayment Rate was introduced by the Chancellor at the Autumn Budget, as part of broader efforts to raise living standards, combat poverty, and tackle the cost-of-living crisis.

Chancellor of the Exchequer Rachel Reeves said: “As announced at the budget, from today, 1.2 million households will keep more of their Universal Credit and will be on average £420 better off a year.

This is our plan for change delivering, easing the cost of living and putting more money into the pockets of working people.

“With as many as 2.8 million households seeing deductions made to their Universal Credit award to pay off debt each month, the new rate is designed to ensure money is repaid where it is owed, and people can still cover their day-to-day needs.”

Work and Pensions Secretary Liz Kendall said: “As part of our Plan for Change, we are taking decisive action to ensure working people keep more of the benefits they’re entitled to – which will boost financial security and improve living standards up and down the country.

“We’re delivering meaningful change to ensure everyone has a fair chance, the support they need, and real hope for the future.”

The Fair Repayment Rate is one of a number of bold measures the Government is taking as part of its Plan for Change to kickstart growth and spread prosperity across the country.

Viewing work as a key route out of poverty, the Government set out the Get Britain Working White Paper – aiming to achieve its target 80% employment rate by overhauling Jobcentres, introducing a new jobs and careers service, and launching a youth guarantee so every young person is earning or learning.

This comes on top of increasing the National Minimum and National Living Wage to ensure being in work pays.

To support those in greatest need, the Household Support Fund has been extended another year – backed by £742 million, so local councils can continue to support low-income households with energy bills, food and essential items, while also funding long-term solutions, like home insulation, to help people at risk of falling into poverty.

The Government is also working to tackle child poverty, rolling out free breakfast clubs in all primary schools in England as the dedicated ministerial taskforce builds its ambitious strategy to ensure every child has the best start in life.

Additional information:

  • The change will be applied to all assessment periods that start on or after 30 April.
  • The 15% deductions cap continues to support customers to repay their debts at a sustainable rate.

UK Poverty Report 2025: RoSPA highlights increased accident risk for lowest-income Britons

  • Out of four nations only Scotland will see child poverty rates fall by 2029 – JRF
  • Deprivation increases both the likelihood and severity of accidents – RoSPA
  • A joined-up approach is needed to address uneven level of accidents among deprived Britons

Following the release of the Joseph Rowntree Foundation (JRF), the Royal Society for the Prevention of Accidents (RoSPA) is urging the UK government to adopt comprehensive strategies to tackle child poverty and preventable accidents.

Released this week, the Joseph Rowntree Foundation’s UK Poverty 2025 Report reveals that without significant investment in social security, the UK government will not ease child poverty by the end of this Parliament. It also highlights that child poverty rates are significantly higher in England (30 per cent) and Wales (29 per cent) compared to Scotland (24 per cent) and Northern Ireland (23 per cent).

It emphasises the critical role of specific welfare policies, such as the Scottish Child Payment, in reducing poverty, with Scotland projected to see a decrease in child poverty rates by 2029. The report calls for targeted policy interventions to address these disparities and improve living standards across the UK.

The release follows the recent publication of RoSPA’s ‘Safer Lives, Stronger Nation’ campaign which showed that accidental deaths in the UK have reached an all-time high, with rates increasing by 42% over the last decade.

Accidents are now the second biggest killer of people under 40. In England alone, accident-related hospital admissions for serious injuries have risen by 48% in the past twenty years, hospitalising over 700,000 people annually.

The economic cost of preventable accidents is staggering, amounting to £12 billion every year due to lost working days and NHS medical care.

Dr. James Broun, Research Manager at RoSPA and author of ‘Safer Lives, Stronger Nation’, said: “Our major review of UK accident data has already uncovered the full scale and true cost of accidents for the very first time.

“We found that deprivation significantly increases both the likelihood and severity of accidents, compounding existing inequalities and creating a vicious cycle of disadvantage.

“This is why we are alarmed by the Joseph Rowntree Foundation’s findings and support their call for Government action to reduce child poverty, while we reiterate our own call for a national accident prevention strategy to help further reduce economic and health inequalities.”

UK Child Poverty Report 2025

The JRF’s latest UK Poverty shows that under current projections, only Scotland will see a reduction in child poverty rates by 2029, largely due to Scotland-specific welfare policies.

Key findings include:

  • Child poverty rates in Scotland are projected to fall, while rates in England and Wales remain high.
  • If the rest of the UK matched Scotland’s reduction in child poverty, 800,000 fewer children would be in poverty.
  • Specific welfare policies, such as the Scottish Child Payment, are crucial in reducing child poverty.

 Deprivation and accident risk

RoSPA notes that deprivation is often linked to an increased risk of accidents. Factors such as unsafe housing, proximity to busy roads, and hazardous work conditions contribute to this risk. Moreover, economic deprivation is associated with health inequalities, which can exacerbate the severity of injuries from accidents.

Key points include:

  • Deprivation increases both the likelihood and severity of accidents.
  • Health inequalities linked to economic deprivation can compound injury severity.
  • Accidents can further entrench material inequalities by disrupting education and employment, creating a vicious cycle of disadvantage.

A Call for a National Accident Prevention Strategy

RoSPA calls for a National Accident Prevention Strategy to address these issues comprehensively. Such a strategy would focus on improving housing safety, reducing road traffic risks, and ensuring safer working conditions, particularly for those in hazardous jobs.

The Need for Government Action

Both JRF and RoSPA stress the urgency of government intervention. A credible child poverty strategy must include policies that rebuild the social security system, while a national accident prevention strategy is essential to reduce preventable injuries and deaths.

By linking these strategies, the UK can create a more holistic approach to improving public health and social welfare, ensuring that both poverty and preventable accidents are addressed through comprehensive, targeted policies.

More than 1.42 MILLION emergency food parcels distributed in past six months

Food banks in our community gave out just over 1,428,000 emergency food parcels across the UK between April and September this year, charity Trussell Trust reports today.

This includes 508,000 parcels provided for children facing hunger across the UK.

The majority of food parcels were distributed to families with children, with 63% of the total number of parcels going to households with children aged 0–16, the charity reports. More than 277,000 people visited a food bank in the Trussell community for the first time between April and September.  

The total number of parcels provided across the UK is 67,000 fewer when compared to the same period last year, representing a 4% decrease. Trussell says there are a number of possible reasons for this recent small dip, such as the gradual slowdown in the extortionate price hikes we experienced on food and bills in recent years, and an end to the Local Housing Allowance freeze in April, bringing support for private renters back in line with local rents. 

However, Trussell says it’s difficult to say if there has been an actual drop in hunger and hardship. The need for emergency food is still persistently high, and the number of parcels provided is 69% greater than the same period in 2019. 

In fact, some UK regions saw a marginal increase in the number of food parcels provided. East of England and London saw increases of 1% and 4% respectively in the numbers of parcels provided.  

Trussell says while food banks are a last resort for people who’ve been left isolated, facing hunger, and without enough money to live on, many are at breaking point due to years of growing numbers of people forced through their doors. 

Winter is often the busiest time for food banks and Trussell is calling on the public to continue to play their part and support their local food banks to meet this urgent need, by volunteering, donating, fundraising or campaigning to help end hunger in the UK. 

Food banks offer hope, dignity and relief to people facing hardship. Many need vital funds to provide services beyond distributing emergency food, such as advice and support that unlocks money someone should be getting and services aimed at helping people out of financial hardship.    

Trussell says the evidence is clear that hunger in the UK isn’t a food problem, it’s an income problem. People are being forced to turn to food banks because incomes from work, and social security payments, do not cover the cost of the essentials, such as food, bills, and toiletries.

That’s why Trussell has also joined forces with hundreds of communities, food banks and charities including the Joseph Rowntree Foundation, in calling on the UK government to take urgent action now.  

Today, food banks across the UK have joined together to rally for change and are giving out a newspaper, the Hardship Times, in Westminster. The newspaper is made up of messages of hardship and hope, collected from hundreds of food banks across the UK.   

The charity says there is hope and it knows we can end hunger, if positive action is taken. The UK government must act swiftly to follow up announcements in the recent Budget, with a clear plan to meet its manifesto commitment to end the need for emergency food and ensure that we do not see even more people facing hunger and hardship on its watch.  

This plan should include investment in our social security system, at the very least introducing a protected minimum floor in Universal Credit to limit the amount of reductions that could be applied to a household’s Universal Credit. This would ensure, for the first time, that there would be a real safety net below which no one could fall.

The charity says this would be a low cost but concrete step towards ensuring our social security system protects people from facing hunger and hardship.  

Emma Revie, Chief Executive of Trussell, said: “The sheer numbers of people still facing hunger and hardship across the UK is heartbreaking. This cannot go on and we refuse to stand by while so many of us are pushed to the brink, left without enough money to live on.  

“Our food banks are a lifeline, offering a warm welcome and space to be heard. They need everyone to play their part to move us towards ending the need for emergency food in the UK.

“You can help make sure food banks can continue to provide warm, compassionate, practical support and advice this winter by volunteering, donating, fundraising or campaigning to help end hunger in the UK. 

“Meanwhile, alongside our community of food banks campaigning today in Westminster, we will continue to call for change.

“The UK Government was elected with a manifesto pledge to end the need for emergency food and the time to act is now. There have been promising steps, but we need a clearer plan with more decisive action to invest in our social security system, if we are to end hunger once and for all.” 

Number of emergency food parcels distributed by food banks in the Trussell community: 1 April – 30 September 2019, 2023, and 2024:      

        1 April – 30 September 2019 1 April – 30 September 2023 1 April– 30 September 2024 
For adults For children   Total   For adults For children Total   For adults For children Total   
UK 534,786 309,203 843,989 952,394 542,915 1,495,309 920,960 507,721 1,428,681 
England 411,598 243,697 655,295 785,489 451,713 1,237,202 764,077 424,758 1,188,835 
Scotland 75,361 36,891 112,252 87,485 42,136 129,621 82,424 39,967 122,391 
Wales 37,262 21,199 58,461 56,496 32,209 88,705 53,878 28,907 82,785 
Northern Ireland 10,565 7,416 17,981 22,924 16,857 39,781

Minimum Income Guarantee in an independent Scotland

Enabling people to thrive and live with dignity

The latest paper in the Building a New Scotland series, Social Security in an independent Scotland, published this week, outlined how a Minimum Income Guarantee could ensure everyone can achieve a dignified standard of living.

The proposals included how a Minimum Income Guarantee could:

  • be set at a higher rate than current UK Government benefits and respond to real changes to the cost of living
  • enable all households to live with financial security
  • ensure those who are able achieve the minimum income level through fair and accessible paid work

Social Justice Secretary Shirley-Anne Somerville said: “With limited powers, the Scottish Government has already delivered transformative social security benefits that have made a real difference to people’s lives. Due to the policies of this government, an estimated 90,000 fewer children are expected to live in poverty this year.

“However, we want to go further and that is why we have proposed that a Minimum Income Guarantee could be introduced in an independent Scotland to ensure everyone has enough support to not only survive, but to thrive.

“The UK approach to social security has provided inadequate levels of financial support and has eroded the effectiveness of the safety net. It is only with the full economic and fiscal powers of an independent nation that we can use all the levers other governments have to tackle inequalities in Scotland.”

Social Security in an independent Scotland

social-security-independent-scotland-paper-9Download

Holyrood: Autumn Statement benefit changes ‘deeply concerning’

Social Justice Secretary writes to DWP on work capability announcements

Changes to work capability assessments announced in the Autumn Statement are ‘deeply concerning’ and could mean people receive less support based on a change of criteria rather than a change in their health, Social Justice Secretary Shirley-Anne Somerville has said.

Writing to DWP Secretary Mel Stride, Ms Somerville highlighted how the Scottish Government has taken a different approach with its social security system being based on treating people with fairness, dignity and respect.

Ms Somerville said: “I remain deeply concerned about the changes to the activities and descriptors for ‘getting about’ for Limited Capability for Work, and the mobilising and substantial risk criteria for limited capability for work-related activity.

“The changes you are proposing, including the extension of the sanctions regime, will have very significant additional impact on some of the most vulnerable people in our communities who need our support most.

“In Scotland, we have taken a different approach to devolved employability support; our services remain voluntary, and we want the support we provide to be seen as an opportunity, not a threat, with fairness, dignity and respect at its heart.

“In delivering our first devolved employability service, Fair Start Scotland, Scottish Government officials had a close working relationship with Job Centre Plus to ensure we were collectively working to provide support for the people of Scotland.”

UK Autumn Statement Back to Work Plan: Letter to UK Government

BPS supports Essentials Guarantee

BPS SUPPORTS CAMPAIGN TO MAKE UNIVERSAL CREDIT ENOUGH FOR PEOPLE TO AFFORD TO COVER ESSENTIALS

The British Psychological Society has joined the Joseph Rowntree Foundation (JRF), the Trussell Trust, and other leading health and care organisations and charities to call for an “Essentials Guarantee”, a new law to make sure Universal Credit’s basic rate is always at least enough for people to afford the essentials. 

The organisations are warning that so many people are routinely going without the essentials it poses a serious risk to the UK’s health.

Together, they have written to the Prime Minister to express their worry that, as the high prices of everyday essentials like food and housing persist, too many people are expected to live with what can be devastating knock-on consequences. 

JRF’s own analysis shows the weekly Universal Credit standard allowance is £35 less than the cost of essential items for a single person, contributing to millions of people forced to use food banks because they can’t make ends meet.

Dr Roman Raczka, President-Elect of the British Psychological Society, and Chair of its Division for Clinical Psychology, said: “Nobody should be in a position of being unable to afford the essentials they and their families need to sustain their health and wellbeing, and it’s clear the current level of Universal Credit falls woefully short.  

“Poverty is one of the major risk factors for the development of physical and mental health problems, and we know that children growing up in poverty are three-to-four times more likely to develop mental health problems, which also leads to long-term impacts upon their education, life chances and quality of life.

“If the government is truly committed to preventing health inequalities from widening further, tackling poverty, and reducing pressure on our already stretched and underfunded public services, it must commit to the Essentials Guarantee to protect this generation, and generations to come.”

About the Essentials Guarantee

The Essentials Guarantee would embed in our social security system the widely supported principle that, at a minimum, Universal Credit should protect people from going without essentials.

Developed in line with public attitude insights and focus groups, this policy would enshrine in legislation:

  1. an independent process to regularly determine the Essentials Guarantee level, based on the cost of essentials (such as food, utilities and vital household items) for the adults in a household (excluding rent and council tax);
  2. that Universal Credit’s standard allowance must at least meet this level; and
  3. that deductions (such as debt repayments to government, or as a result of the benefit cap) can never pull support below this level.

The UK Government would be required to set the level of the Essentials Guarantee at least annually, based on the recommendation of the independent process. JRF analysis indicates that it would need to be at least around £120 a week for a single adult and £200 for a couple.

Independent Advocacy Service celebrates one year anniversary

A free independent advocacy service to support disabled people to access Scottish Government benefits has marked its first year in operation.

The Scottish Government is investing more than £20 million to deliver this service over the course of four years. This independent service is available to people with a disability who may need extra support. This could include people with a sensory disability, mental health condition or learning disability. The service is also available to parents or carers who need support to access benefits for a child.

The service, which was introduced in January 2022, enables disabled people to be more involved in the processes and decisions which affect them and advocates will provide the most appropriate form of support to each individual based on their circumstances.

Minister for Social Security Ben Macpherson said: “I am delighted that, in its first year, the Independent Advocacy Service has supported over 550 people applying for Scottish Government social security benefits.

“The service is a key part of our human rights approach to social security and how the values of dignity, fairness and respect in our social security system work in practice.

“The service helping disabled people to access the financial support they are entitled to, and is delivering on our commitment to make our system as inclusive as possible.

“With the Scottish Government’s commitment to invest more than £20 million in it, the advocacy service will be able to assist even more disabled people access the help they are entitled to over the coming years.”

CEO of VoiceAbility, Jonathan Senker said: “Over our first year of delivering the Independent Advocacy Service, people tell me that it enabled them to apply for social security benefits when before they felt daunted by the process. They say that advocates supported them to express themselves openly, when previously they felt obliged to ‘put on a brave face’ or underplay their needs.

“It’s vital that people can access the benefits to which they are entitled. I am proud of VoiceAbility’s skilled team of advocates, who are ready and available to support disabled people across Scotland. I encourage anyone who thinks an advocate could help them to access benefits to contact us. We’re here on the phone, online and in-person to make sure you’re heard when it matters.”

The independent service was introduced in January 2022, ahead of a pilot for Adult Disability Payment – which replaces Personal Independence Payment (PIP) in Scotland. Adult Disability Payment was introduced across Scotland in August 2022.

Did you know you can get free, independent support to access Social Security Scotland benefits if you’re disabled? If you’re based in or near Edinburgh, come and chat to Alex at one of our drop-ins:

⏰Alternating Mondays, 1-3pm: Edinburgh Food Project, Pilton food bank at St Margaret Mary, Boswall Pkwy, EH5 2JQ – from 16 January

⏰Every Wednesday, 10am-2pm: The Salvation Army, 36 Wardieburn Drive, EH5 1BZ

⏰Every 1st and 3rd Thursday of the month, 1-3pm: Edinburgh Food Project, Broughton food bank at Broughton St Mary’s Parish Church, Bellevue Crescent, EH3 6NE

⏰Every 2nd and 4th Thursday of the month, 9.30am-1pm: Citizens Advice Bureaux at 23 Dalmeny Street, EH6 8PG – from 12 January

⏰Every 1st and 3rd Friday of the month, 11am-1pm: Craigmillar Library at 101 Niddrie Mains Road, EH16 4DS

Immediate benefit support for those fleeing the invasion in Ukraine

The Department for Work and Pensions is laying emergency regulations today (Monday 21 March 2022) so those arriving in the UK from Ukraine as a result of the Russian invasion can access Universal Credit and jobs support immediately.

Ukrainians will also be eligible for Housing Benefit, Pension Credit, Personal Independence Payment, Child Disability Living Allowance and Carers Allowance, and Attendance Allowance. Contributions-based Employment and Support Allowance (ESA), and Jobseekers Allowance (JSA) are also available for those Ukrainians who meet the criteria.

Translation services are available to help new arrivals with phone applications, with Work Coaches in DWP Jobcentres on hand to support people making claims online.

DWP staff are also delivering additional face-to-face assistance to those who need it – including tailored support to find work and advice on benefit eligibility – and will continue to do so.

Without the emergency legislation people arriving from Ukraine would be subject to the Habitual Residence Test, meaning they would have to wait up to three months before being able to receive income-related benefits, including Universal Credit.

Secretary of State for Work and Pensions Thérèse Coffey said: “My priority is that people fleeing the unimaginable horrors in Ukraine to seek safety here get the support and help they need from day one to move forward in their lives immediately.

Financial Secretary to the Treasury Lucy Frazer said: “It is vital that families coming from Ukraine can support their children from the moment they arrive, and by adjusting child benefit rules and ramping up our support, the tax system is pivoting to ensure this happens.

Salvation Army Refugee Response co-ordinator Major Nick Coke said: “We welcome the news that Ukrainians coming to the UK will be able to access benefits immediately and for those who are able, help to find suitable work.

“With offices on the ground in Ukraine and the border countries providing emergency food and shelter, The Salvation Army sees first-hand the trauma those displaced by war have experienced.

“It is fitting that they receive targeted help when seeking refuge in the UK.”

Dignity, fairness, respect: Improving disability benefits

Disabled people with the most serious lifelong health conditions will have more financial security under Scotland’s social security system.

Adult Disability Payment will replace the UK Government’s Personal Independence Payment (PIP). It will open for new applications in pilot areas starting this month.

Disabled people on the highest components of the new benefit and whose needs are highly unlikely to change will be eligible for an “indefinite award”. In effect, this will mean they will not be subject to reviews and can rely on their new benefit into the long-term.

People with ongoing awards of Personal Independence Payment and Disability Living Allowance do not need to make an application for Adult Disability Payment. They will be contacted from this summer to let them know when their awards will automatically be moved safely and securely to Adult Disability Payment.

Social Security Minister Ben Macpherson said: “The introduction of indefinite awards, as part of Adult Disability Payment, underlines our commitment to deliver on the principles of Scotland’s social security system to treat people with dignity, fairness and respect.

“In making this decision, we have engaged with a wide range of people with lived experience of the current system and will continue to listen as we design and build a social security system that works for disabled people.

“We want to ensure that people on the highest levels of Adult Disability Payment awards receive long-term and adequate support, because those with lifelong conditions, or disabilities resulting in needs highly unlikely to change, should not be subject to unnecessary reviews when it is reasonably expected that their situation will not change.

“Under the UK Government’s Personal Independence Payment, similar awards have generally been reviewed between every 2 to 10 years. However, disabled people tell us that even review periods of 10 years can create stress and anxiety. That is why we have decided to introduce indefinite awards – we are determined to do things differently and build a more compassionate system in Scotland.”

Moira Tasker, Chief Officer, Inclusion Scotland said: “Inclusion Scotland warmly welcomes the announcement that there will be indefinite awards of Adult Disability Payment. We are glad the Minister has acted on the views expressed by disabled people and adopted this measure.

“It will come as a huge relief for disabled people with high, permanent levels of impairment who faced continual reassessments under the flawed DWP, Personal Independent Payment, system. Indefinite awards will also provide some certainty and security for those who receive them.”

Morna Simpkins, Director of MS Society Scotland, added: “We are pleased the Scottish Government has listened to the views of the MS community and MS Society Scotland and will re-introduce indefinite awards.

“MS is relentless, painful, and disabling. Indefinite awards will provide some people living with progressive long term conditions, like MS, with the security of knowing they will not have their awards downgraded or income cut.”

Adult Disability Payment is the twelfth benefit to be introduced by Social Security Scotland since September 2018, which includes seven new benefits, unique to Scotland.

Number of workers on universal credit up by 1.3 million since the eve of the pandemic

  • 130% rise in working claimants during the pandemic 
  • Low-income workers facing “perfect storm” this spring unless ministers improve “woefully inadequate” levels of support, warns union body 
  • Cost-of-living crisis already depressing value of UC, TUC analysis reveals 
  • *NEW POLL* shows many families already struggling to make ends meet 

The TUC has warned that millions of low-income workers face a “perfect storm” this April with universal credit (UC) falling behind the cost of living as energy bills and taxes rise. 

The warning comes as new TUC analysis reveals that the number of workers on UC has increased by 1.3 million since the eve of the Covid-19 pandemic. 

The analysis of official statistics shows that over 2.3 million workers were in receipt of UC at the end of 2021, compared to just over one million on the eve of the pandemic in February 2020. 

This represents an increase of 130 per cent over the last two years and means 1 in 14 (7.2 per cent) working adults now claim UC. 

The TUC says the huge rise in UC recipients has been driven by working households being pushed into financial hardship during Covid, with millions facing a cost-of-living crunch this year. 

Basic value of universal credit now lower than at start of pandemic 

The TUC says that the basic value of UC is now lower than at the start of the pandemic as a result of UC not keeping up with inflation. 

TUC estimates show that the value of UC has fallen by £12 a month in real terms when measured against CPI inflation and £21 a month when measured against RPI inflation compared to just before the pandemic (February 2020).  

The TUC says this trend will only get worse in the months ahead with inflation forecast to rise further. 

Struggling to cover the basics 

The TUC warns that millions of low-paid families face a crunch point in April when energy bills and national insurance contributions go up – at the same time as UC continues to fall in value. 

New polling – carried out for the union body before last week’s energy cap announcement and Bank of England forecasts – shows that many are already struggling to make ends meet: 

  • One in eight workers (12 per cent) say they will struggle to afford the basics in the next six months. And a fifth of working people (22 per cent) say they’ll struggle to afford more than the basics. 
  • Low-paid workers are more likely to be struggling. One in six (17 per cent) low-paid workers (those earning less than £15,000 a year) say they will struggle to afford basics in the next six months, and three in 10 (29 per cent) say they’ll struggle to afford more than the basics. 

Parents of young children, disabled workers, key workers and BME workers are more likely to be struggling: 

  • Nearly one in five families (18 per cent) with kids under 11 will struggle to afford the basics 
  • Over one in five (21 per cent) disabled workers will struggle to afford the basics, compared to 10 per cent of non-disabled workers 
  • 14 per cent of key workers say they’ll struggle to afford the basics in the next six months, compared to 10 per cent of non-key workers 
  • 14 per cent of BME workers say they’ll struggle to afford the basics in the next six months, compared to 11 per cent of white workers 

The poll also reveals that a fifth of workers (21 per cent) say they have Christmas debts to pay off this year – a number that rises to over a quarter (28 per cent) for workers with children of school age. 

Better support needed 

The TUC says the government must do far more to help struggling households to get through the months ahead. 

The union body says the cost-of-living support announced by the Chancellor on Thursday is “woefully inadequate” and will provide families with just £7 extra a week – most of which will have to be repaid. 

The TUC is also calling for UK Government to use the upcoming spring budget to: 

  • Increase to UC to 80 per cent of the real Living Wage. 
  • Introduce a windfall tax on energy companies, using the money to reduce household energy bills 
  • Boost the minimum wage to least £10 an hour now 
  • Work with unions to get pay rising across the economy 

TUC General Secretary Frances O’Grady said: “Millions of low-paid workers face a perfect storm this April.  

“At the same time as energy prices and national insurance contributions shoot up, universal credit is falling in value. 

“The government must do far more to help struggling families get through the tough times ahead. The support package announced by the Chancellor last week is woefully inadequate. 

“Universal credit urgently needs boosting and we need further action to reduce fuel costs for those battling to make ends meet. 

“Oil and energy companies shouldn’t be making bumper profits, while many struggle to heat their homes. 

“If ministers fail to do what is necessary, more households will be pushed below the breadline.” 

On the need to boost pay, Frances added: “The best way to give working families long-term financial security is to get pay rising across the economy. 

“That means increasing the minimum wage to at least £10 an hour now, and ministers requiring employers to negotiate sector-wide fair pay agreements with unions.”