Family Finances Hit By £2.3 Billion Bombshell

Low income families will be £2.3 billion worse off as a result of the government’s welfare reforms. The new rules, to be phased in throughout April, include a cut in housing benefit for social housing tenants deemed to be underoccupying their homes - the bedroom tax - the introduction of a household benefit cap and the end of the council tax benefit system. Benefit increases are also to be capped at 1 per cent for the next three years.  The charity Child Poverty Action Group (CPAG) has estimated that the cuts will take £2.3 billion away from the poorest households compared to last year, with the government spending £16.5 billion less on social security than it did as recently as 2010/11.  Read more on the CPAG website.