Nine million low income households face pay cut of up to £720 this year

NINE million families on low incomes will be hit by a pay cut of up to £720 this year as inflation bites.

Families claiming benefits will be hundreds of pounds short because rates have not been increased to be in line with soaring inflation, according to the Joseph Rowntree Foundation.

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The government announced that Brits claiming Universal Credit, child benefit, state pension and more will see payments rise by 3.1% in April.

That’s in line with the rate of inflation recorded in September last year, which was 3.1%.

But its soared since this point – and higher inflation means that you’ll have to spend more as the cost of goods will go up.

That means your money won’t go as far.

Experts predict inflation will go up even further and hit 7% in spring – when the new benefit rates roll in.

But because these rates have not been matched to this figure, cash-strapped families will see a “pay cut” of up to £750, the organisation said.

That’s if you’re in a couple and have children, but couples who are retired will be £540 short a year.

The foundation said that the current new benefit rates for April were “inadequate” and will leave families “deeply concerned about how they will manage to stay afloat”.

That’s because millions of households are battling against eye-watering price hikes to bills including energy, fuel, food and more.

Brits will have to dig deep to find another £693 for their energy bills after a new price cap was confirmed earlier this month, which will rise to £1,971 a year in April.

Fuel prices are soaring too – costs have reached a record high today with petrol at 149.43p a litre and diesel at 152.83p, according to the AA.

While the price of a weekly shop for your groceries will surge by £180 a year as inflation rockets.

JRF deputy director of evidence and impact Peter Matejic said: “The decision not to uprate benefits in line with inflation represents another cut for millions of people whose incomes will now fall even further behind the cost of living. 

“There can be no justification for this. Our social security system should protect people from harm, not put them in danger.

“The government must change course and ensure that benefit levels reflect the higher rate of inflation we are all now experiencing.

“There is no doubt that a failure to do so will leave more people in our society unable to meet their most basic needs.”  

Help if you are struggling

If you’re struggling to pay your way, then there are a number of things you can do to get help.

Struggling families can apply for cash and grants for furniture, bills and food up to £1,000 under the welfare assistance scheme.

Grants are available through your local council – which will decide whether you’re eligible and what help is available. Some councils don’t have a scheme though. 

While the £500 million Household Support Fund can also help with household essentials.  

There is help you can get to pay for rising energy bills as well.

Cold weather payments help cover the cost of heating homes when the temperature drops.

If the temperature falls to zero or below for seven days in a row, you can get £25. 

While the winter fuel discount can get you up to £300 off your bills depending on your age, whether you receive benefits, and if you live alone. 

This post first appeared on thesun.co.uk