06/04/2005

Campaigns over 'peanuts' benefits launched

Anti-poverty campaigners have handed out peanuts at protests across Britain, in order to highlight what they term as the "miserly" benefit increases facing millions of claimants.

The 'Peanuts4benefits' campaigners said that millions of claimants are facing benefit increases of just 55p from today, which is the smallest rise for at least thirty years.

The campaigners say that this means a single person over the age 25 will now receive a total of just £56.20 per week. They claim that the increases are calculated using the 'Rossi Index' measure of inflation – which excludes rent, mortgage interest payments and council tax.

The campaigners claim that claimants are now over £30 worse off than if benefits had been increased in line with average earnings over the last 25 years.

A statement released by 'Peanuts4benefits' said: "What can you buy with 55p? The government keeps banging on about poverty and social exclusion but does nothing to stop the increasing divide between those on low incomes and the rest of the population."

The protests are taking place on the same day that a Citizens Advice report warned that income inequality in the formula for setting benefit levels risked creating a group of people who are "increasingly marginalized" from the rest of society.

The report called for a review of the benefits system to prevent this happening.

Citizens Advice Senior Policy Officer, John Wheatley, said that the increase in tax credits offered by the government to help reduce pensioner and child poverty were welcome. He also welcomed efforts by the government to help more people get back into work. However, he said it was "regrettable" that little was being done to help those people of working age who were "genuinely unable to get into a job". He said: "Poverty ought to be unacceptable for all. There should be a thorough review of the needs of this substantial group of our fellow citizens.”

(KmcA/MB)

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