Fifth of working-age families in Banbury are set to lose out if benefits do not rise with inflation

A fifth of working-age families in Banbury are set to lose out if the Government increases benefits at the same rate as wages, rather than inflation, new analysis shows.
A fifth of working-age families in Banbury are set to lose out if the Government increases benefits at the same rate as wages, rather than inflation, new analysis shows.A fifth of working-age families in Banbury are set to lose out if the Government increases benefits at the same rate as wages, rather than inflation, new analysis shows.
A fifth of working-age families in Banbury are set to lose out if the Government increases benefits at the same rate as wages, rather than inflation, new analysis shows.

On October 31, Chancellor Kwasi Kwarteng is to set out a plan to fund the tax cuts announced in his controversial September mini-budget.

It will include a decision on whether benefits will be increased by the same rate as wages – which at the current rate of 5.4% would amount to a real-terms cut – or prices, which soared almost 10% in the year to August.

New analysis by the Joseph Rowntree Foundation charity reveals that an estimated 18% of working-age families receiving means-tested support in Banbury – 9,284 households – will be impacted if benefits were only to rise in line with wages.

The planned increase would also apply to child benefits, which are claimed on behalf of 21,740 children in the area.