Former prime minister Gordon Brown has called on the government to deliver an emergency budget before a “financial time bomb” in October “push millions over the edge”.
After a new commission report suggested government support was failing to meet the needs of households, Mr Brown said the Prime Minister, Rasheed Singh and Liz Truss, would be “this week” out of emergency measures. Must agree.
Writing in The Observer, he said: “A financial time bomb will explode for families in October as the second round of fuel price hikes in six months sends shock waves through every household and pushes millions over the edge. Is.
“A few months ago, Jonathan Bradshaw and Antonia Keung at York University estimated that a 54% increase in fuel prices in April would push 27 million people out of 10 million households into fuel poverty.
“Now, 35 million people in 13 million households – an extraordinary 49.6% of the UK population – are at risk of fuel poverty in October.”
Mr Brown said that if no deal was struck by Mr Johnson, Mr Sink and Ms Truss then “Parliament should be called back to force them to do it”.
A new report by Professor Donald Hirsch at Loughborough University found that support for low-income households is falling short of the losses they face amid the cost-of-living crisis, with some families a Up to £1,600 a year worse off. .
Analysis shows that the extra £1,200 offered to the poorest in society this year will fail to offset three big hits to their incomes between October 2021 and October 2022.
The loss of £20-a-week benefits, annual increases in line with inflation forecasts, and a jump in the energy cap will mean the worst-off families cannot make up the gap.
This is because the flat rate payments offered by the government fail to take into account the different sizes and needs of different households.
The couple, with three children, are again losing almost as much from price rises as they did from last year’s cuts to the Universal Credit uplift.
And an out-of-work couple with two children loses around £1,300, or £1,600 if higher inflation is taken into account for worse-off households, according to the report.
This is based on an £800 increase in the energy price cap, and will increase as it rises further.
An annual increase of 3.1 percent in April 2022, rather than the 9 percent increase in the consumer price index last year, will add to cost-of-living pressures, the analysis showed.
The Food Foundation, one of the organizations that endorsed the report’s findings, called the findings “alarming”.
Isabelle Hughes, policy engagement manager at the charity, said: “There is now a serious shortfall in support for families who are most in need. Urgent action is needed.
“This is why we have repeatedly called for the extension of free school meals to the millions of children living in poverty who currently lack this vital safety net.
“Ensuring these children have access to a nutritious hot meal every day is the fastest way to stop a malnutrition epidemic that will otherwise destroy a generation’s education, health and future productivity.”
We understand that people are struggling with rising prices, which is why we have worked to protect eight million of the most vulnerable British families with direct payments of at least £1,200 this year, including Additional support is in place for pensioners and those claiming disability benefits.
Meanwhile, the Child Poverty Action Group and the Joseph Rowntree Foundation told The Independent Cost of Life Support needed to rise from £15 billion to £30 billion before winter.
A government spokesman said: “We understand that people are struggling with rising prices, which is why we have offered direct payments of at least £1,200 to eight million of Britain’s most vulnerable families this year. Work has been done to protect, with additional support for pensioners and claimants of disability benefits.
“We are also saving the average worker more than £330 a year through our £37 billion support package through tax cuts in July, allowing people on Universal Credit to keep £1,000 more of their earnings and A deduction of 5p is allowed for fuel duty.Normal family £100.