First, the good news. DUWC were relieved to hear that the Chancellor, after weeks of uncertainty, finally committed to uprating benefits in line with inflation at a rate of 10.1%.
We’re afraid that for benefit recipients, the good news goes no further.
Ensuring benefits keep pace with rising inflation is the bare minimum the government could have delivered. In fact, by delaying the uprating until April 2023, those in receipt on benefits face five cold months of hardship – with many likely to have to choose between eating and heating their homes. DUWC are already dealing with service users who are in financial hardship. For them, waiting until April for benefits to go up in line with inflation is a scary prospect.
Compounding this is that benefit rates are at an historic low, despite the Chancellor’s assertion that the UK has ‘one of the most comprehensive safety nets anywhere in the world’. Even after the uprating, as the Institute of Fiscal Studies has said, ‘it won’t be until April 2024 when inflation subsides that real benefit levels actually catch up to their pre-pandemic level’.
Most concerning of all, the Autumn Statement saw a shift back to a narrative that DUWC have seen time and time again. As soon as the economic situation declines, blame shifts to the most vulnerable, and yesterday was no exception. This Chancellor sought to create a divide between ‘workers’ and benefit claimants, while ignoring the fact that 40% of people claiming Universal Credit are already in work. 600,000 additional people are to be expected to attend regular meetings with work coaches, at a time when the DWP can barely handle the strain of the current situation and staff have recently voted to strike. Increasing in-work conditionality is a worrying sign.
Emphasising the implicit vilification of benefit recipients was the Chancellor’s announcement that £280 million was to be pledged rooting out supposed fraud in the benefits system. Benefit fraud is incredibly low, particularly when compared to tax fraud and evasion, so this is again a worrying decision. The Telegraph’s front page demonstrated how this narrative is already taking hold by claiming that the Chancellor’s Autumn Statement ‘shielded benefit claimants from soaring inflation with a raid on workers’.
The reverse is true. The poorest in society will pay for this economic downturn, and the support of DUWC and organisations like it will be more vital than ever.