Pre Pay Cards as Working Families Hit by Cuts
Working families will be hit by the welfare cuts new research warns as these households are set to suffer a loss nearly twice the level for non-working households.
If you are worried how your family will cope with the cuts outlined in the Government’s spending review consider a pre pay credit card to aid budgeting your income.
A TUC analysis has predicted working households will suffer around £9.4 billion once these welfare cuts take effect compared to £5.9 billion non-working households will lose in total.
The research also showed 69 percent of the policies in the spending review will hit working households at a cost of £4.5 billion.
“Now we show that it is working families – both the poor and the squeezed middle – who are the big losers from welfare cuts, not the alleged workshy scroungers that the government claims to target,” said Brendan Barber, TUC general secretary.
“The government needs to reconsider its spending plans before it causes any more economic damage and pain to working families.”
Furthermore, the TUC states it is working families who will bear the brunt of the cuts as the majority are related to benefits for children.
A TUC study last week revealed departmental spending cuts will hit the poorest households 15 times harder than the richest 10 percent.
Housing benefit cuts are set to hit low income households hardest and worryingly half of all poor children living in working households, which is likely to increase child poverty the TUC believes.
Pre Pay Credit Cards
A pre pay credit card is a good way to budget your monthly income if money is tight and you want to ensure you do not unconsciously overspend.
Prepaid cards can be bought for a small charge of up to £10 to be used immediately once funds have been loaded.
An online tool is also available so the card user can monitor exactly where and how much they have spent over the month to see where their income is going and where they can make savings.