Charities focused on tackling poverty are calling for the next Prime Minister to bring in measures to reassure low-income families, as energy bills are set to reach over £4,000 next year.
70 charities and organisations have signed a letter urging the Tory candidates to address the ‘national emergency’ and to make up the £1,600 shortfall low-income households will face this winter.
While the government has pledged £1,200 to each vulnerable household to cope with price rises, this package is no longer enough as energy bills are £1,800 higher than last year.
Other costs such as food have also risen by £1,000, meaning the £1,200 payment only cover half of the increases, showing the need for more support.
‘Many of our organisations work directly with these families and are becoming overwhelmed, too often unable to provide the support so desperately needed,’ the letter reads. ‘This situation cannot be allowed to continue. As the prospective leaders of this country, we urge you to act now to demonstrate the compassion and leadership needed to tackle this issue head on.’
Without further support low-income households will have to cover the shortfall themselves, pushing them into debt.
Nearly three quarters of low-income households receiving Universal Credit or other means-tested benefits have been forced to go without at least one essential this year.
The organisations are pushing the Conservative candidates to ensure the social security system always provides enough so families can afford the essentials and for debt reduction rates from benefits to be made more affordable.
Paul Kissack, Chief Executive at the Joseph Rowntree Foundation, which signed the letter, said: ‘History shows that, when Britain faces a national emergency, Government is at its best when it steps up and takes determined and creative action to protect people and businesses, often in previously “unthinkable” ways.
‘We saw that after the 2008 crash with the nationalisation of banks. We saw it in the pandemic with a generous furlough scheme. The nation faces another national emergency now, and people rightly expect the Government to act to offer protection. Instead, we are seeing a Government asleep at the wheel, and leadership contenders failing to grasp the scale and urgency of the crisis.
‘Even before the current crisis the social security system failed to cover the essentials, degraded by years of cuts. People are already selling their possessions, taking on risky debt and building up arrears they may never be able to pay back. And things are about to get far worse.
‘Planning for a substantial support package needs to start immediately. Without it, vulnerable people will face a catastrophe on a vast scale when winter sets in. The consequences of sitting idly by are unthinkable.’
Other organisations which have signed the letter include Save the Children UK, The Trussell Trust, StepChange Debt Charity and Mind.
Photo by Dylan Gillis