Abstract

In November, the Secretary of State for Social Security announced that benefits would be uprated in line with inflation in April 1995. However, since 1979, there has been a widening gap between the incomes of poor and wealthier households (94—24/2—1.1). A report from the Social Policy Research Unit (SPRU) highlights government failure to uprate benefits in line with earnings as contributing to this growing inequality. Figures produced by the Government Statistical Service on the estimated take-up of incomerelated benefits for 1992 claim that more than four out of five of those eligible claim some £9 out of £10 of the available cash. The figures for family credit show a steady increase in take-up from 57 per cent of the caseload in 1988–9 to 66 per cent in 1991–2. Income support figures suggest that the take-up is now between 77 and 87 per cent.

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