The Government has recently admitted that 300,000 families with savings will lose out as a result of poorly thought through measures in the Welfare Reform Bill and new Universal Credit.
The Bill currently proposes that families with £16,000 or more in savings will be ineligible to claim for the Universal Credit and ministers have admitted that 100,000 families with savings of £16,000 and above will lose on average £2,720, and 200,000 families with savings between £6,000 and £16,000 will see a decrease on average of £210.
While I agree there is a need to reform welfare and get people into work if they can, I have serious concerns about the Government’s decision to penalise people who have done the right thing and saved for their future. This is yet another raid on family budgets when prices are rising and people are feeling the squeeze.
These families will be wondering what on earth they have done to deserve being hit in the pocket.