Throughout the country, claimants and anti-poverty groups joined together in a co-ordinated campaign to raise the issue of the poverty caused by low benefits. Millions of claimants faced benefit increases of as little as 50p per week from April 2005, the smallest rise in 30 years.
For example a single person on Job Seekers Allowance, over 25 years old, will receive 55p increase giving a total of £56.20 per week.
Increases are based on the Rossi Index – a measure of inflation that excludes rent mortgage interest payments and council tax. The index dropped to 1% in September this year, according to the Government Office for National Statistics.
Kevin Flynn, Chair of the National Unemployed Centres Combine, one of the organisations behind the Peanuts Benefits protest, said that the Governments refusal to substantially raise the level of benefit payments is leading to “institutionalised poverty”.
“Benefits are not linked to wages or even prices, so inequality is built into the system. The government will never be able to end child poverty, as it has claimed it will by 2020, unless it tackles poverty benefit payments for all.”
When the pensioners received a 75p uprating a few years ago, the response throughout the country was in condemnation of the insulting rise in pensions. As a result, although there is still a long way to go, pensions have increased well in advance of the Rossi Index.