Charity pushes for government to protect benefit claimants with ‘minimum floor’

Ahead of the autumn budget on 30 October, the Joseph Rowntree Foundation (JRF) is calling on the government to take urgent action to improve living standards for people across the UK.  

In their new report, ‘The real inheritance: UK living standards crisis at October budget,’ the social change organisation urges the government to create a budget that puts families’ financial security first.  

Right now, with so many people struggling to cover basic costs, they argue that strong support is desperately needed to reduce financial stress.  

One of JRF's main recommendations is to introduce a ‘minimum floor’ in universal credit. 

What is a ‘minimum floor’? 

A ‘minimum floor’ is a guarantee that would prevent your benefit payments from falling below a set level, even if you have debts or face reductions due to the benefit cap.  

This would act as a financial safety net, making sure you have enough to cover essentials even if you’re repaying debts or are affected by welfare rules. 

How could a minimum floor guarantee in universal credit help you?  

Currently, about half of households on universal credit experience reductions in their monthly payments. Often, these are due to: 

• Debt deductions: if you owe certain debts, such as loans from the Department of Work and Pensions, council tax arrears, or rent arrears, the government may deduct money from your benefits to repay these debts. 

• Benefit cap reductions: if your household’s benefits go over a specific cap, universal credit payments may be reduced, sometimes by a lot. 

The JRF argues that introducing a minimum floor would help protect claimants from the harshest cuts. For example, they suggest setting the minimum floor at 15% below the standard universal credit allowance, which would stop payments from falling under this level.  

By making sure that you get a certain amount each month, a minimum floor could protect you from sudden drops to your income, help you budget more effectively and lessen the risk of severe money troubles.  

For many, this could mean an additional £48 per month – a boost to cover essentials like food and utility bills. 

Other measures that could offer you support 

As well as the minimum floor, the JRF is calling for several other important changes that could make a real difference in your life.  

• Ending the freeze on local housing allowance: this would mean that if you’re renting, your housing support could  be more in line with current rental prices and ease the financial pressure of rising rent costs. 

• Targeted support for energy bills: energy costs have been a major concern, especially for those on low incomes. New, targeted energy support could help you manage these bills more effectively. 

• Long-term funding for the household support fund: this fund provides emergency help to families facing immediate financial crises. Securing this funding would mean ongoing access to crucial support when you need it most. 

• Strengthening the social support system: the JRF is calling for social support to be rebuilt, including an “essentials guarantee” in universal credit. This could mean more reliable support to help cover the basics – giving you greater financial stability both now and in the future. 

• Affordable, secure housing for everyone: by improving the housing market, the JRF hopes to make sure everyone has access to a safe and affordable home, so you wouldn’t have to worry as much about housing uncertainty or rising rent. 

• Focus on better-paying jobs: the JRF also wants to see more support for moving people into higher-quality, better-paying jobs, which could help you improve your long-term financial situation. 

• Financial support for caregivers: these changes would help make sure you’re financially supported for the time and effort you spend caring for a loved one.  

 What help is available now? 

If you’re on a low income or claim benefits, you may be entitled to a reduction on your council tax bill of up to 100%. Check to see if you’re eligible. 

You can find out about household support fund schemes in your area and how to get help with essential costs through your local council.  

How we can help  

If you’re struggling to cover your essential bills, we might be able to help.  

Why not use our free benefits calculator to check you’re getting all the benefits you’re entitled to. 

And if you need debt advice, we’re available over the phone or 24/7 online. Don’t struggle on alone. Get in touch today.