The 1 April marks a fateful turning point in the long history of the British welfare state. On that day, families not only face the biggest single cut in their living standards for at least 50 years but the social security system will meet only half the financial needs of millions of families on Universal Credit.
According to Loughborough University’s Minimum Income Standard — compiled from what members of the general public think are a family’s essential living costs — a couple on Universal Credit with two children aged three and seven require £511 a week after paying rent and council tax. From next week all they will receive is £274 net of council tax. If they have a third child, they will be subject to the two-child cap and will need at least £600 a week but will receive only £298 — less than half of their needs. Single people fare little better and for thousands, what’s called “the benefits cap” sets an even more miserly upper ceiling for payments, which means Universal Credit covers only 45 per cent of their needs.
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