BASW UK urges Rishi Sunak to uprate benefits in line with inflation

BASW UK has joined over 100 anti-poverty organisations in lobbying the new Prime Minister to agree to uprating benefits in line with inflation.

The letter to Mr Sunak was co-ordinated by the Joseph Rowntree Foundation. It warns that the social security safety net is 'threadbare' and for the government to implement the uprating as soon as possible rather than wait until April.

With food prices rising faster than at any point since 1980 and energy bills soaring to extreme levels, households on low incomes are fearing a winter of financial hardship. Debt, homelessness and food bank usage were already on the increase before the cost-of-living crisis hit.

As Chancellor, Mr Sunak gave a commitment to increasing benefits in line with inflation. This would provide some reassurance to people on the lowest incomes during what is expected to be an incredibly challenging winter. However, since becoming Prime Minister, there have been reports that the government is considering rowing back on this pledge.

The government must stop kicking this can down the road. Individuals and families need help now. Nobody should be left unable to afford essentials, such as rent, food or heating. 

Read the full letter below.

Dear Prime Minister, 

We are writing to congratulate you on your appointment as Prime Minister. During your time as Chancellor you acted decisively to protect low-income households and pledged to increase benefits in line with inflation as normal. We are now calling on you to honour that promise and to implement the uprating as soon as possible rather than waiting until April next year. 

Households on low incomes desperately need stability and certainty as they try to afford the essentials, pay their rent, and keep food on the table. Bringing forward the usual uprating of benefits by September’s inflation rate would support people most in need through a difficult winter, including those who are sick or disabled, caring for children or others, and those with low earnings or looking for work. It would also send a clear signal that your government is serious about prioritising the needs of the most vulnerable, as the Chancellor promised to last week. 

Many of your colleagues across the Conservative Party made clear this month that they agree that increasing benefits by inflation is both necessary and the right thing to do. The public is supportive too, with 61% of people agreeing that benefits should go up with inflation. 

Previous decisions not to go ahead with the normal uprating of benefits have left our social security safety net threadbare. Current benefit rates leave households unable to afford even the essentials, with debt, homelessness and foodbank use all on the rise long before this crisis hit. Failing to uprate with inflation would amount to the biggest permanent real-terms cut to the basic rate of benefits ever made in a single year. Even if uprating goes ahead as normal, the support our social security system provides will still be at historic lows. 

The cost of living crisis continues to intensify. Inflation is forecast to remain extremely high for many months to come. In the face of such economic uncertainty it is right that you provide households on low incomes with the reassurance they need and uprate benefits by inflation as soon as possible.