Benefits – including tax credits, universal credit, child benefits and jobseeker's allowance – traditionally rise every year in line with inflation. But, as part of ongoing austerity measures, they have been frozen since April 2016, resulting in a decline in their real term value while inflation rises.
The continuing benefits freeze will leave low-income households more than £200 worse off next year, according to a leading think tank.
Rising inflation will mean that that low-earning couples with children will effectively lose £210 in 2019, the Resolution Foundation says.
Single parents could be as much as £260 poorer, its research has found.
If this year’s inflation reaches the predicted 2.7 per cent when revealed on Wednesday, it will mean the worth of working age benefits has fallen by an astonishing 6.4 per cent over the last four years.
10 million people will be affected, and called on the government to use the upcoming budget to cancel the freeze.
Adam Corlett, its senior economic analyst, said: "While the prime minister this week repeated her claim that austerity is over, significant cuts in support for millions of low-income families are set to continue next year as a result of the ongoing freeze in working age benefits.
It was also revealed a transformation of the benefits system could leave some families £2,400 a year worse off. Work and pensions secretary Esther McVey has reportedly told cabinet colleagues the changes would effect two-thirds of working age couples with children.
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