Urgent action needed to ease pain of cost-of-living crisis as rising energy bills will ‘devastate’ poorest families
Urgent action is needed to ease the “pain” of cost-of-living crisis as a new report shows millions of families in deep or persistent poverty.
While there is little difference in the overall increase in bills from April, with all households facing an immediate increase of between around 40% and 47%, the difference in the proportion of household incomes these increases will represent is stark.
Middle-income households will be spending on average 6% of their incomes on energy bills, and no more than 8% for any family type considered.
The figures are released alongside JRF’s flagship state-of-the-nation report which reveals a worrying increase in the number of children growing up in very deep poverty.
Around 1.8 million children are growing up in very deep poverty, meaning the household’s income is so low that it is completely inadequate to cover the basics.[2] This represents an increase of half a million children between 2011-12 and 2019-20.
JRF is warning that without additional support, people already in poverty are likely to find a sharp increase in energy bills very difficult to cope with.
People living in deep and persistent poverty were already under constant pressure trying to afford food, bills and other essentials.
With the impact of rising energy bills expected to be much harsher for families on low incomes, there is a clear case for targeted protections to prevent serious hardship once the energy price cap is lifted.
Following a cut to Universal Credit in the autumn, the level of support for people who are unable to work or looking for work remains profoundly inadequate.
JRF is calling for an immediate emergency payment for people on the lowest incomes to help prevent hardship in the months ahead.
Leader of Plaid Cymru, Adam Price MS, has called for an emergency economic summit to pool ideas on how to tackle the twin crises of surging debt and the rise in the cost of living.
Speaking in Questions to the First Minister on Tuesday, Mr Price pointed out that “many of the key levers remain at Westminster” but that there was much Wales could do independently to respond, such as capping social housing rent rises, bringing forward targets for abolishing fuel poverty, and starting talks with local authorities on debt bonfires for those with council tax arrears.
First Minister Mark Drakeford confirmed that the Resolution Foundation said recently that “April will mark a cost of living catastrophe.”
Residents of working-age who live in Flintshire are being encouraged to find out if they are entitled to a one-off payment of £100 to help with fuel bills this winter.
As part of support package of over £50m to address immediate pressures on living costs, Welsh Government has made available over £38 million through a Winter Fuel Support Scheme.
Eligible households can claim a one-off £100 payment from their local council to provide support towards paying their winter fuel bills.
Find out more here: flintshire.gov.uk/en/Resident/Council-Tax-and-Benefits-and-Grants/Winter-Fuel-Support-Scheme.aspx
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