CYP Now - Families on universal credit face £570 loss as cost of living soars

Millions of families with children who receive universal credit face losing out on an average of £570 per year due to rising inflation, child poverty campaigners have warned.

Families subject to the benefits cap face an even bigger loss, campaigners warn. Picture: Adobe Stock

Analysis of rising inflation compared with a planned increase in universal credit reveals that the value of universal credit for families with children will fall significantly.

“In April, universal credit will increase by 3.1 per cent, just as inflation is predicted to peak at 7.25 per cent. This means the value of universal credit for families with children will fall by around £570 a year, on average,” according to a briefing published by the Child Poverty Action Group (CPAG).

Around 3.6 million children are in families who receive universal credit, the briefing states, adding that 180,000 families subject to the benefit cap will experience an even greater fall in the value of universal credit.

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