Rising energy bills to ‘devastate’ poorest families

Urgent action is needed to ease the cost-of-living crisis, as a new report from the Joseph Rowntree Foundation (JRF) shows millions of families are in deep or persistent poverty.

New analysis from the JRF finds households on low incomes will be spending an average of 18% of their income after housing costs on energy bills after April.

For single adult households on low incomes this rises to 54%, an increase of 21% since 2019/20.

JRF predicts lone parents and couples without children will spend around a quarter of their incomes on energy bulls, an increase of almost 10% in the same period.

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.

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.

Katie Schmuecker at JRF said: ‘The reality for many families is that too many children know the constant struggle of poverty. The fact that more children are in poverty and sinking deeper into poverty should shame us all.

‘The case for targeted support to help people on the lowest incomes could not be clearer. But this must go hand in hand with urgent action to strengthen our social security system, which was woefully inadequate even before living costs began to rise.

‘Our basic rate of benefits is at its lowest real rate for 30 years and this is causing avoidable hardship. The Government must do the right thing and strengthen this vital public service.

‘Rising energy prices will affect everyone, but our analysis shows they have the potential to devastate the budgets of families on the lowest incomes. The Government cannot stand by and allow the rising cost of living to knock people off their feet.’

In related news, the UK government is failing in its duty to ensure the right to adequate housing for homeless families, finds Human Rights Watch and the Childhood Trust in a joint report.

Photo supplied by JRF