In response to ongoing economic challenges, the UK government, led by Chancellor Jeremy Hunt, has introduced measures including a tax reduction and an increment in child benefit, aimed at aiding low-income families.
In March 2024, the UK government announced financial measures aimed at supporting low-income families amid ongoing economic challenges. Chancellor Jeremy Hunt’s spring Budget introduced a 2p reduction in National Insurance tax and adjustments to Child Benefit. These steps come as the UK faces a recession and persistent inflation, affecting the affordability of essentials for many.
Recent figures indicate a significant portion of low-income families, particularly those on Universal Credit, are experiencing food insecurity, with 73% affected towards the end of the previous year. This situation is underscored by research from the Joseph Rowntree Foundation.
In terms of welfare, Universal Credit, state pension, and Disability Living Allowance payments are set to proceed in March, with those due on Good Friday being paid a day earlier, on March 28. However, the cost of living payments, which have been a source of relief for eligible families, ended in February 2024. The final payment was distributed between February 6 and February 22.
Looking forward, there is an anticipated increase in benefits and state pensions in April 2024, aligned with the previous September’s rate of inflation and an 8.5% increment, respectively. Yet, there is concern over the impact of the benefits cap, which may lead to real-term cuts for several beneficiaries.
For those affected by the cost of living crisis and in need of support, options include budgeting advance loans, charitable grants, and assistance from energy providers. Individuals impacted are invited to share their experiences via email.
