Govt to impose real-terms cut in working-age benefits

The government has won a vote in parliament that could bring about a real-terms cut in working-age benefits.

Those in power are seeking to introduce a maximum one per cent increase in the benefit for the next three years, arguing that financial handouts should not be going up faster than wages.

However, Labour has said that 68 per cent of households who are going to be caught out by the below-inflation rise in benefits are in work.

This means many adults in the UK could struggle to get by in the coming years, as they do not have enough money to meet all of their outgoings.

If this is the situation, then individuals could be forced to seek out a debt solution that allows them to retake control of their finances.

Former foreign secretary David Miliband said: "I don't want to live in a society where we pretend that we can enjoy the good life while our neighbours lose their life chances."

By James Francis