Well we already know Brexit will have an effect on a wide range of aspects of our life including travel, the cost of goods and the availability of many items – however it is worth noting that the true impact of leaving the EU without an agreement will not be known until after the departure date of 29 March 2019.
One area that will be significantly affected by Brexit is the cost of living in the UK. If a no-deal Brexit occurs, the Bank of England predicts that inflation will rise significantly. In November, the Bank's governor Mark Carney stated that a no-deal Brexit could lead to a drop of eight percent in Britain's gross domestic product in 2019. This economic downturn could result in a rise in unemployment to 7.5 percent and inflation to 6.5 percent.
While everyone in Britain will be impacted by the increased cost of living, individuals on benefits will be particularly affected. Universal Credit and other equivalent benefits are set to remain frozen in cash terms throughout 2019. Work and Pensions Secretary Amber Rudd has indicated that the freeze is unlikely to be lifted until 2020.
This freeze on benefits combined with the predicted rise in inflation could have a detrimental effect on individuals relying on these benefits. As the cost of goods and services increases, those on benefits may struggle to afford basic necessities and may face an even greater financial burden.
It is important to consider the potential consequences of Brexit on the most vulnerable members of society. The impact on benefits and universal credit should be a key consideration in the ongoing discussions and negotiations surrounding Brexit.
If the cost of living rises as a result of a no-deal Brexit, everyone in Britain will be impacted. But those on benefits stand to feel the brunt of the increase.
The Bank of England has predicted that inflation will rise significantly in the event of a no-deal Brexit. In November, the Bank’s governor Mark Carney said a no deal could lead Britain’s gross domestic product – the value of goods and services – to drop by eight per cent in 2019, which could mean unemployment rises to 7.5 per cent and inflation rises to 6.5 per cent.
However, Universal Credit and all equivalent benefits are set to remain frozen in cash terms throughout 2019, with Work and Pensions Secretary Amber Rudd suggesting the freeze is unlikely to lift until 2020.