One in six Chichester households to be impacted if benefits only increase with wages

One in six working-age families in Chichester 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 17% of working-age families receiving means-tested support in Chichester – 7,417 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 14,055 children in the area.

Across the UK, there are 193 Conservative constituencies where a fifth or more of families are set to lose out if benefits only rise by wages, including Prime Minister Liz Truss's seat of South West Norfolk.

The same is true of 180 Labour seats, and 34 held by the Scottish National Party.

JRF says politicians need to "think long and hard" about withholding money from their constituents, saying that the basic rate of benefits is at a historic low in real terms.

Katie Schmuecker, principal policy advisor for the charity, said: “We know millions of families have already gone without the essentials this year, missing meals, not cooking hot food or having hot showers.