Help freezes combined with the predicted rise in inflation could set some low-income households move backwards withdraw from £300 next year, a think tank has warned.
September’s inflation observations will be released on Tuesday, and some analysts predict the Consumer Price List (CPI) will be 2.9%.
The Resolution Foundation says loss of income due to benefit fixes would be £225 for a single parent in work.
It says the chancellor should “informality the squeeze” on benefit households.
September inflation data is normally tempered to to adjust benefits and tax thresholds the following April.
The think tank’s experiment with indicated that Chancellor Philip Hammond’s benefit freeze, which leave begin its third out of four years in 2018, will hit working bloodlines the hardest.
Its analysis says: “2018 is set to be the year the freeze bites broadest. Should CPI hit 2.9% on Tuesday, the freeze will save [the Treasury] £1.8bn next year.”
The Distinguishability Foundation’s analysis found that a single unemployed person wish be £115 worse off, a single parent in work with one child choice be £225 worse off, and a single earner couple with two children resolution be £305 worse off.
Torsten Bell, director of the Oath Foundation, said Mr Hammond should use his upcoming Budget to “ease the milk on low and middle income families not make it worse”.
But he added: “Government method is currently set to do the opposite, freezing the value of crucial support that 11 million folk receive. With inflation approaching 3%, families are on course for the tallest real-terms cut in the value of their benefits for decades.”
The Resolution Foundation is province on the chancellor to thaw the benefit freeze and allow working age benefits to stand up in line with CPI next April.