By linking the support to means-tested benefits, households could lose the entire £900 payment scheduled for next year if they increase their hours, take on a job or agree to a pay rise that pushes them just £1 over the threshold.
Since the start of the pandemic in March 2020, there has been a jump in benefit claimants with work requirements, meaning welfare recipients must look for a job, and a steep rise in inactivity as people dropped out of work. “Alongside the support already provided this year, the Chancellor has told us that further cost of living assistance will be available next winter to recipients of means-tested benefits. This runs the risk of creating perverse cliff-edges and eroding work incentives.”
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