From the TUC

Cuts in the value of benefits

25 Jun 2010, by in Society & Welfare

As well as including a large number of cuts in benefit entitlements (for example for the poorest mothers and for disabled people) the Budget announced changes in the mechanism for benefit uprating. A quick analysis, using the CPI and RPI forecasts provided by the Office for Budget Responsibility, shows that as a result of the move to CPI for calculating benefit rises, the values of all state benefits – and pensions – are being cut.

As a result, for example, of the Budget’s decisions, the value of Carers Allowance and Jobseeker’s Allowance will be 4 and 3 per cent less respectively in 2015 than had the RPI indexing remained in place (£135.20 and £132.60 less annually respectively).

Note: this post was updated on 29th July 2010 to take account of figures released by Steve Webb MP in response to a parliamentary question from Yvette Cooper MP.

4 Responses to Cuts in the value of benefits

  1. Budget claims on child poverty do not stack up | ToUChstone blog: A public policy blog from the TUC
    Jun 25th 2010, 4:06 pm

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  4. A bad Budget for jobs and for jobseekers | Left Foot Forward
    Jun 28th 2010, 10:54 am

    […] value of benefits is also being cut which will make jobsearch harder (£65 is not much with which to survive and pay […]

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