“Chancellor Philip Hammond facing calls from own party to review four-year benefit freeze”


An analysis by the House of Commons Library showed that, due to rising inflation, the measure introduced last year is now expected to reduce support for those on low incomes by £13bn over the next four years, compared with the Government’s own forecast of £9bn.

The independent Institute for Fiscal Studies (IFS), says that annual uprating of benefits and tax credits each April would, in normal circumstances, offset some of the loses to income from a weak pound and rising prices. But, due to the four-year freeze, the IFS adds that unless the policy changes higher inflation will reduce their real incomes.

The four-year freeze includes the main rates of Jobseeker’s Allowance, Income Support, Employment Support Allowance and Housing Benefit, as well as Child Benefit and other working tax credits.