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Charities call for urgent action against further poverty

LEADING charities called yesterday for the government to  protect struggling families from falling further into poverty after Brexit “short-term shocks.”

A coalition of organisations including the Joseph Rowntree Foundation (JRF), Shelter, Trussell Trust and Child Poverty Action Group, say the risks facing low-income households need assessing and contingency plans must be stepped up.

The charities are warning that, with 14 million people already living in poverty, more could be pushed into hardship because of the risks of a no-deal Brexit.

JRF said that even with a smooth Brexit, continuing with the benefit freeze imposed since 2015 for another year will lead to millions of people in poverty missing out on £220 a year, with another 200,000 being pulled into poverty.

In an open letter to MPs, the charities have said many people are already facing “impossible situations” such as struggling to pay their rent or put food on the table for their children.

The letter noted that some level of economic and social disruption will follow Brexit at least in the short term.

It said: “The public services [low-income families] rely upon are also under pressure due to the consequences of rising poverty. We need a new deal for low-income families to cushion the blow and this has prompted us to write to you.

“Without pre-emptive action by the government there is potential for the already shamefully high rates of poverty in Britain to worsen further in the face of price and income shocks.”

The letter added that although the signatories did not take a view on the merits of Brexit or otherwise, they were clear “we must protect people on low incomes from any short-term economic shocks.”

One of the actions needed is for urgent improvements to universal credit to prevent destitution and ensure it provides the support expected from public services, JRF argued.

In particular, the coalition is calling for an end to the five-week wait for the first payment.  

The charities are also calling for an end to the freeze on working-age benefits and tax credits, and an emergency stimulus package of funding and support for areas with high levels of poverty.

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