Posted: 23 February 2016

Mapped: Families that will be affected by four-year benefit freeze

As our new report, The Future of Family Incomes: How tax and welfare changes will affect families to 2020, reveals, incomes for many families with children will change significantly over the coming years. The extent to which they do - better or worse - will depend on the individual family type, their personal circumstances, rates of inflation, and the circumstances in which they make any claim for benefit.

One major change that will affect large numbers of families is a four year freeze on household benefits and tax credits. Forecasts from the Office for Budget Responsibility predict that costs of living will rise by about 12% by 2020 – and without key benefits and tax credits keeping pace with this, families will see significant falls in real terms incomes.

The effects of benefit changes

We have used Tax Credit data to estimate that more than 7 million children in 4.5 million families will be affected by the freeze – with around two-thirds of the families affected in work.

Our map illustrates how many children will be affected across different areas of the country.

The four-year benefit freeze is just one measure

As shown in The Future of Family Incomes, the four-year benefit freeze is just one of a number of measures that will affect family incomes in coming years.

Read our report to see how different family types may see their incomes change overall in the coming years.

Read our report

By Sam Royston - Policy team