WORKING families on benefits across Notts are set to lose out following the Autumn Statement, a Nottingham MP has claimed.
The Chancellor of the Exchequer George Osborne revealed most working-age benefits including income support, Job Seekers Allowance and Employment and Support Allowance will only increase by one per cent annually for the next three years, falling well short of inflation rates, currently at 2.7 per cent.
Child benefit and housing allowance will also only rise by one per cent for two years from April 2014.
He said: "We have to acknowledge that over the last five years those on out-of-work benefits have seen their incomes rise twice as fast as those in work. With pay restraint in businesses and government, average earnings have risen by around 10 per cent since 2007. Out of work benefits have gone up by around 20 per cent."
But Nottingham South MP Lilian Greenwood said many people on tax credit, child benefit and housing benefit are working.
She said: "Some people are on such low wages because they can't get the hours.
"It's those people who are just about managing, or actually not managing, that are once again being clobbered."
However, the income tax threshold has also been increased, which means workers can earn £9,440 a year without paying tax.
Meanwhile, Nottingham City Council has said its budget will be cut by about £3.7 million in 2014-15 after Mr Osborne announced a two per cent budget cut for councils.
Council leader Councillor Jon Collins, said: "The council has been working hard to continue to provide the services our citizens need at a reduced cost, but the continued attack on local authorities will make this near impossible.
"The additional loss of £3.7 million will make life even more difficult for those who are already suffering from the coalition's unfair cuts."
He also criticised the Government's economic policies, as it was revealed that growth dropped by 0.1 per cent this year – and the period of austerity has been extended by one year to 2017-18.
See page 25.
