Parliament has introduced this Act to cap the up-rating of benefits at 1% for the next three years rather than in line with the cost of living.
This means that key benefits - such as child tax credits and child benefit - would increase by less than the expected rate of inflation, making it even harder for many families already struggling to make ends meet and to keep up with the rising costs of living.
This will affect 11.5 million children.
We are very concerned about the Act and have produced a series of blog posts (including a calculator that shows how a family would be affected), statements and analysis about it.
Calculate how the welfare benefits up-rating cap will affect families.
Our public affairs manager writes that 'this bill will push many more families into poverty'.
On 8 January, MPs voted to endorse the Act. Please read our chief executive's statements:
- before the vote: 'Failure to make sure that benefit rates at the very least reflect rises in the cost of living will deepen inequality and increase poverty.'
- after the vote: 'This bill will punish millions of children and families already struggling to make ends meet.'
On 7 January, our chief executive Matthew Reed and leaders of 26 other organisations jointly signed a letter to parliament calling for the government to reconsider the bill. The letter appeared in the Observer.
On 19 March, the House of Lords will vote on amendments to protect children from the impact of the welfare benefit up-rating bill. As well as support from Church of England bishops, the moves have gained support from a number of church leaders.
Please read our supporters' statements:
Find out who will be affected and the cost for families in our briefing document.
Please read our our analysis of the government's impact assessment of the up-rating bill.