Children's charities warn Government to raise benefits in line with inflation

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The Chief Executive of Child Poverty Action Group said the Government has the power to "stop the worry" for struggling families. (Image: PA Archive/PA Images)
The Chief Executive of Child Poverty Action Group said the Government has the power to "stop the worry" for struggling families. (Image: PA Archive/PA Images)

Children's charities are urging the Government to raise benefits at least in line with the latest inflation figures to help families whose finances are being "pushed to the brink". They have warned of the dangers of "yet more children going cold and hungry" as parents struggle to keep up during the cost-of-living crisis.

Their call came as official figures confirmed that UK inflation remained at 6.7% last month. A joint open letter to Conservative MPs saw the charities say they are "deeply concerned" by reports the Chancellor Jeremy Hunt might raise benefits by a lower figure a decision they warned would have an impact on millions of low-income families.

The letter, from Save the Children, the Trussell Trust food bank network, The Joseph Rowntree Foundation, Action for Children, Citizen's Advice and The Children's Society, urges Conservative MPs to demand Mr Hunt must "do the right thing" by uprating benefits at least in line with September's inflation figure.

The organisations will be hoping this happens when Mr Hunt makes his autumn statement on November 22 although Downing Street has declined to make any commitment, saying there is a process to follow. On Wednesday, when pressed on why he could not say benefits would rise in line with inflation, the Prime Minister's official spokesman said: "I simply wouldn't get ahead of the process."

Becca Lyon, head of child poverty at Save the Children UK, said: "Inflation remains at 6.7% and so does the strain on struggling families' finances. Now would be the worst time to cut the incomes of those pushed to the brink."

Shop prices 'are yet to peak and will remain high' as inflation hits new heights qeituitriqhhinvShop prices 'are yet to peak and will remain high' as inflation hits new heights

"The cost-of-living crisis is not easing for low-income families who are constantly worrying about falling behind on their energy bills and rent or getting into debt."

Last month, following reports the Chancellor is considering real-terms cuts to benefits, England's Children's Commissioner told the PA news agency there is a "huge moral case" to support young people.

Dame Rachel de Souza said now is "a really big moment for us as a nation to support our children and back our children", when asked about the possibility of Mr Hunt breaking with tradition by not raising welfare payments in line with inflation in his autumn financial statement.

In research published on Wednesday, Action for Children said families with children are more likely than other households to suffer serious financial hardship and mental health problems as a result of the cost-of-living crisis.

The charity has repeatedly called for benefits to be increased in line with inflation and for a commitment to reforming of cost-of-living payments to take account of family size.

Imran Hussain, director of policy and campaigns at Action for Children, said: "These figures show inflation remains stubbornly high and as our research released today shows, families with children are among the hardest hit by the cost-of-living crisis by almost every financial measure."

"This economic crisis is far from over as prices are still rising, with food inflation particularly high at 12.1%. With winter approaching, the continued financial pressures on low-income parents will only rise further, meaning yet more children going cold and hungry."

He said the Chancellor "must use the autumn statement to protect families with children from these intense and ongoing pressures on household finances".

Chief executive of Child Poverty Action Group, Alison Garnham, said the Government has the power to "stop the worry" for struggling families.

She said: "There is no comfort for struggling families in the news that inflation is unchanged and still the Government hasn't said that it will safeguard benefits and ensure they rise at least with inflation."

8 money changes coming in February including Universal Credit and passport fees8 money changes coming in February including Universal Credit and passport fees

"Ministers must stop the worry and commit to uprating benefits at least in line with inflation. The alternative is that many more children will be pulled into poverty their wellbeing and life chances jeopardised."

A Department for Work and Pensions spokesperson said: "We increased benefits by over 10% this year in order to protect the most vulnerable from the impact of high inflation."

"As is the usual process, the Secretary of State will conduct his statutory annual review of benefits and state pensions using the most recent data available."

* An AI tool was used to add an extra layer to the editing process for this story. You can report any errors to [email protected]

Steve Charnock

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