Millions of families are set to be squeezed by a triple whammy of rising energy prices, an increase in national insurance, and the cut to Universal Credit.
A basic duty of government is to ensure secure and affordable energy supplies for households and businesses. Whilst soaring gas prices are part of a wider global problem, it is a fundamental failure of long-term Government planning over the last decade that we are so exposed and vulnerable as a country to rising gas prices and it is consumers and businesses that are now paying the price.
But now, millions of families are now set to be squeezed by a triple whammy of rising energy prices, an increase in national insurance, and the cut to Universal Credit.
Four in ten households on Universal Credit are facing a 13 per cent rise in their energy bills in the same month as their benefit is cut by £20 a week. According to Citizens Advice, the £20 a week uplift would cover near a whole week of energy costs for a below average income household.
It is estimated that the rise in the energy price cap means half a million more families will be plunged into fuel poverty.
Furthermore, according to analysis by the New Economics Foundation, 2.5 million families will be hit by both the cut to Universal Credit and the increase in national insurance. On average, they will lose out by £1,290 in 2022/23.
Labour is calling for the Government to change course and protect family finances before it’s too late – by cancelling the cut, dropping the tax rises on working people and businesses, and urgently exploring further measures to help households alleviate the cost of rising bills, including the option of making automatic and extending the Warm Homes Discount.
Shadow Business Secretary Ed Miliband said:
“Families are facing a cruel triple whammy that will hit them in their pockets: rising energy prices, rising taxes, and a £1,000 cut to universal credit.
“Ministers are choosing to press ahead with a damaging cut to universal credit whilst imposing unfair tax rises on working families and in spite of the rising cost of heating homes.
“It is a fundamental failure of long-term Government planning over the last decade that we are so exposed and vulnerable as a country to soaring gas prices and it is families that are now paying the price.
“This Government says it is on the side of working people and families, yet is doubling down on decisions that will plunge half a million more households into fuel poverty. It’s completely indefensible.”
According to End Fuel Poverty Coalition estimates, the £139 rise (equating to 12.2%) will result in an additional 488,000 households in fuel poverty. News – End Fuel Poverty Coalition