Cost of Living crisis

Damning report warns UK on course for second ‘lost decade’ ahead of Budget

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https://leftfootforward.org/2024/03/damning-report-warns-uk-on-course-for-second-lost-decade-ahead-of-budget/

Tories devastating record set to continue unless Budget delivers ‘desperately needed measures’ to recover living standards

In a bleak assessment of the Tories track record, the 2020s are on course to be the ‘second lost decade’ in living standards, a leading charity has warned the Chancellor ahead of his Spring Budget announcement. 

Leading anti-poverty charity, Joseph Rowntree Foundation (JRF) published the damning report on Monday, warning that, without political intervention, this Wednesday’s budget risks condemning Britain to another decade of declining living standards. 

Based on current government spending plans, working families could be £1,900 a year worse off by 2029 than in 2021. While essentials are predicted to remain less affordable relative to post tax earnings until 2029.

The cutting analysis of the UK’s economic trajectory is a warning to Jeremy Hunt that if he fails to deliver immediate measures to support living standards in the coming budget, then this will be the result. 

Decisive intervention from policy makers is what the charity has urged, as it warned that many families will be poorer by the end of the 2020s than at the start. While the Chancellor must prioritise providing long-term economic security for households requiring “the right political will” to turn the situation around. 

Currently, post-tax earnings are £2,400 a year lower for the average working family than they were in 2021, while essential goods and services for the average family are £270 a year more expensive than at the beginning of 2021, the JRF research found.

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https://leftfootforward.org/2024/03/damning-report-warns-uk-on-course-for-second-lost-decade-ahead-of-budget/

Continue ReadingDamning report warns UK on course for second ‘lost decade’ ahead of Budget

Over half of Universal Credit recipients do not have enough money for food, research finds

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https://leftfootforward.org/2024/03/over-half-of-universal-credit-recipients-do-not-have-enough-money-for-food-research-finds/

A petition calling on the government to take urgent action to support the introduction of an Essentials Guarantee was presented to political parties in Westminster this week.

Research commissioned by the Trussell Trust has found more than half of recipients of Universal Credit do not have enough money for food.

The study was carried out by YouGov on behalf of the Trussell Trust. It found that 2.4 million claimants (37 percent) had fallen into debt because they could not keep up with essential bills. Two in five (42 percent) reported being behind on one or more household bill.

The research suggested that 780,000 claimants of Universal Credit had been driven to use a foodbank during the month December 2023 to January 2024. More than half of the recipients who were surveyed said they had run out of food. In the previous 12 months, 22 percent of Universal Credit claimants reported being unable to cook hot food as they could not afford to use their own or other utilities. 52 percent said they were behind on their bills and credit commitments or were finding keeping up with them a constant struggle.

From April, the £90 weekly Universal Credit standard allowance is £30 less than the weekly cost of essential items for a singly person, says the charity. It is calling on the Chancellor to provide greater support for people on the lowest incomes in next week’s Spring Budget, including an extension to the Household Support Fund. 

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https://leftfootforward.org/2024/03/over-half-of-universal-credit-recipients-do-not-have-enough-money-for-food-research-finds/

Continue ReadingOver half of Universal Credit recipients do not have enough money for food, research finds

Thames Water lobbying government to let it increase bills by 40%

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Image of a burst water main.
Image of a burst water main.

https://www.theguardian.com/business/2024/feb/28/thames-water-lobbying-government-bills-dividends-fines-breaches-taxpayer-bailout

UK’s largest water company also calls for dividend payouts and lower fines for breaches to avoid taxpayer bailout

Thames Water has been lobbying the government and regulators to let it increase bills by 40%, pay lower fines for breaches and keep paying out dividends as part of efforts to avert a taxpayer bailout, according to a report.

The UK’s largest water company was trying to strike a deal with the watchdog Ofwat that would give it permission to charge customers more to avoid having to be taken over by court-appointed special administrators, the Financial Times reported.

That plan would give Thames Water permission to increase bills by 40% by 2030, while also offering more leniency around regulator fines and rules around the dividends it can pay to shareholders.

It comes as the company, which serves more than 15m households, attempts to deal with a debt pile of £14bn and widespread criticism over sewage dumping.

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https://www.theguardian.com/business/2024/feb/28/thames-water-lobbying-government-bills-dividends-fines-breaches-taxpayer-bailout

Continue ReadingThames Water lobbying government to let it increase bills by 40%

‘Bolder action is needed:’ Anti-poverty campaigners issue home truths for the Chancellor ahead of Spring Budget

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https://leftfootforward.org/2024/02/bolder-action-is-needed-anti-poverty-campaigners-issue-home-truths-for-the-chancellor-ahead-of-spring-budget/

‘Cost of living support may be receding but the tide of people not being able to afford life’s essentials is not. It is time we moved from stop-gaps to sustainable solutions.’

February 22, 2024, marked the last of the cost of living payments being sent out. The cash top-ups had been awarded to people receiving means-tested benefits, disability benefits, and pension credits, at regular intervals over the course of the cost of living crisis. They have been a lifeline for around eight million low-income families.

But with rising living costs driving disadvantaged households further into poverty, with prices still rising despite inflation easing, and food and energy remaining at extortionate levels, charities and experts have warned that the payments are not enough. They have expressed fears about what may happen if the government does not announce additional payments.

The final cost of living payment has renewed calls for the introduction of a system that is there whenever anyone falls on hard times, rather than being just a ‘stop gap’ solution.

Ahead of the Spring Budget on March 6, anti-poverty charities and campaigners are calling on the Chancellor for bolder action to tackle poverty during the cost of living crisis.

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https://leftfootforward.org/2024/02/bolder-action-is-needed-anti-poverty-campaigners-issue-home-truths-for-the-chancellor-ahead-of-spring-budget/

Continue Reading‘Bolder action is needed:’ Anti-poverty campaigners issue home truths for the Chancellor ahead of Spring Budget

“Six million UK households still in fuel poverty despite energy bill drop”

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https://www.energylivenews.com/2024/02/23/six-million-uk-households-still-in-fuel-poverty-despite-energy-bill-drop/

Dimitris Mavrokefalidis

Ofgem’s announcement of a 12% drop in energy bills for April to June is welcomed, but National Energy Action warns that six million UK households will still face fuel poverty

Today, Ofgem revealed the energy price cap for April to June, showing a 12% drop in typical annual energy bills to £1,690.

Despite this reduction, National Energy Action (NEA) cautions that 6 million UK households will continue to grapple with fuel poverty.

This figure marks a significant increase from the 4.5 million households affected at the onset of the energy crisis in October 2021.

The persistent challenge of fuel poverty is exacerbated by the fact that current energy bills remain 49% higher than pre-crisis levels.

Adam Scorer, Chief Executive of NEA, said: “This is, of course, good news – any fall in energy bills is welcome. However, the drop coming in April still leaves bills significantly higher than they were before the energy crisis began.

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https://www.energylivenews.com/2024/02/23/six-million-uk-households-still-in-fuel-poverty-despite-energy-bill-drop/

Continue Reading“Six million UK households still in fuel poverty despite energy bill drop”