Inflation To Draw Thousands Of Families Into Benefit Cap

Rishi Sunak is facing growing pressure to act amid warnings that spiralling inflation means an extra 35,000 of Britain's poorest families will lose out on a massive boost to their income. Already 120,000 households are missing out on an average of £2,600 a year because of the benefit cap, new official figures show.

- Kate Devlin

Analysis by the leading charity Child Poverty Action Group (CPAG) shows that figure could rise to more than 150,000 unless the limit on how much help they can receive from the state is increased for the first time in six years. The average household misses out on £50 a week, but for a small number of families that figure is more than £300 a week.

As part of a £15bn emergency package last month, the chancellor did announce that those on the cap would receive a £650 one-off cash payment being given to millions across the country. But he also suggested that they would miss out on a massive boost to their income early next year when benefits are set to rise in line with inflation. Campaigners and experts, including the highly respected Institute for Fiscal Studies (IFS), have urged ministers to ensure some of the least affluent people in society do not miss out on what could be a double-digit hike in their income.