A new analysis by the Institute for Fiscal Studies, published today, finds that 7 million people will see a reduction to their benefits under the proposal, including 3 million families who will lose out through cuts to Child Benefit.
The Welfare Benefits Uprating Bill, which will be read for the second time in the House of Commons today, would limit increases to most working-age benefits and tax credits to the below-inflation rate of 1 per cent, for the next three years. The current rate of inflation is above 2 per cent.
The IFS analysis shows that because the proposed changes apply to almost all benefits and tax credits, both those in work and those in households without jobs will be affected and that given current forecasts of inflation there would be a cumulative 4 per cent cut to benefits.
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