A new briefing by the Legatum Institute’s UK Poverty Unit finds that 650,000 people will be shielded from poverty due to the package of measures announced by the Chancellor.
The analysis models a comparison between the number of people who would be in poverty under current benefit levels, without further support, against the number of people who will be in poverty after the introduction of the Chancellor’s measures.
Breaking down the data, the briefing finds that:
• The majority of those shielded from poverty are in families with a disabled person. 390,000 of those protected would be in families that include a disabled child or adult. Six-in-ten of the 650,000 protected from poverty are in such families.
• Nearly a quarter of a million pensioners will be shielded from poverty. 240,000 pensioners will be protected from falling into poverty.
• Nearly half of those affected are in working families. 310,000 of those protected from falling into poverty are in working families, while only 130,000 of those affected are in workless families. The remaining 210,000 are in families in which all adults are retired.
• The areas which would benefit the most are all red wall seats. Nearly quarter of a million people (220,000) in Northern England would be shielded from poverty – more than in any other region.
Baroness Stroud, Conservative Peer and CEO of the Legatum Institute, said: “The government has today rightly prioritised the nation’s most vulnerable families. The package of one-off grants for those on benefits, pensioners and the disabled will make a considerable difference to people who are in deep poverty and would otherwise have been facing hard choices between paying for food or fuel.”
“Legatum Institute data shows that half of those in poverty in the UK, around 7 million people, have at least one disabled member in their family. The extra support of £150, on top of money already set aside for those receiving benefits, will be critical and is something I particularly welcome.
“However, the Government should have gone further. Providing all households, regardless of their financial circumstances, with £400 of support is poorly targeted and potentially inflationary, risking further fuelling the cost-of-living crisis. This money should also have been targeted on those families struggling most to make ends meet.”
“Looking further forward, having set out measures to take the sting out of the immediate crisis, we must now look for solutions which will address the longer term root causes and unleash the potential of Britain’s economy in the future.“