Is Cost of Living Support Enough?

On 21 September 2022, over 50 faith, charity and organisational leaders signed an open letter to the Prime Minister, calling for direct support for the poorest households in response to rising living costs:

As faith groups, charities, trade unions and front-line organisations we have seen the cost of living emergency escalating not only in the statistics but in the lives of people we meet day to day, in foodbanks, debt centres and in our places of worship. The least well off in our communities are facing the sharpest end of this crisis, and without substantial support will be dragged into destitution.

It is the urgent, moral responsibility of the Prime Minister to ensure that people on the lowest incomes have enough to live in the months ahead. Spiralling costs are affecting everyone, but for those who were already fighting to keep their heads above water this winter’s challenges will be a matter of life and death.

The Energy Price Guarantee announced on 8^th September, whilst welcome, hasn’t gone far enough. Analysis published today by Prof Donald Hirsch indicates that the average family of four receiving Universal Credit will still need an additional £1,391 over the next six months to stay warm and fed. Low income households need targeted financial support which takes into account family size and need, is distributed quickly and in amounts large enough to enable families to live decently this winter and beyond.

Increases in poverty and destitution because of this crisis are not inevitable, if government, business and civil society recognise that this is an emergency and act now. We believe that concerted action can turn the tide on poverty, see us through this winter and put us on the path to a poverty free Britain. The government has the tools to deliver this at their disposal, and they must use them now.

Signed by:

Enough to get through the winter: New analysis by Prof Donald Hirsch

New analysis (21 September 2022) by Prof Donald Hirsch updates his earlier report (7 August) to calculate the gap between rising living costs and the support provided by government to low-income households in England.

It calculates that a family of four receiving Universal Credit will still be £1391 behind what they need to stay warm and fed, despite government support.

About the Author

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Is cost of living support enough? Launched 7 August.

As living costs skyrocket, millions of families in the UK are struggling to make ends meet. This report (launched 7 August 2022) by Professor Donald Hirsch, Loughborough University, reveals the gap between the support the government is currently offering to households and the anticipated rise in living costs. It concludes that millions of families are at risk of going without, because the support they’ve been given simply doesn’t stretch far enough.

Endorsed by former Prime Minister Gordon Brown and over 55 faith groups, charities and political leaders, the report calls on the government to take urgent action to bridge the cost of living gap faced by the lowest income families in our communities.

Introduction

It is the urgent task of the next Prime Minister to ensure that families have enough to live, through this crisis and beyond. I am grateful that this paper outlines the gap the government must urgently fill before the next wave of rising costs overwhelms people. Together with faith groups and charities working on the front-lines to offer urgent support, we have listened to the people who are at risk of falling through the gaps if action isn’t taken. We have heard from the families we’ve met and those highlighted in the report that the flat-rate payments offered by the government won’t stretch far enough for families who each have different needs and circumstances. These must be the people the next Prime Ministers prioritises as we look for solutions.
Alongside the organisations, charities and faith groups who have endorsed this paper, I call on the government to take immediate action to bridge the shortfall and ensure families have enough to live.

We, the undersigned, ask the Government to consider appropriate measures to bridge the shortfall in family finances documented in this paper.

Watch the launch event with JPIT and Christians Against Poverty

For more information about this report, email enquiries@jointpublicissues.org.uk.