Our new analysis finds that households on low incomes will be spending on average 18% of their income after housing costs on energy bills after April.
For single adult households on low incomes this rises to a shocking 54% 📈
The difference in the proportion of household incomes that will be spent on energy bills 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 🏠
With the impact of rising energy bills expected to be much larger for families on low incomes, there is a clear case for targeted protections to prevent serious hardship once the energy price cap is lifted.
"I am having to tell the children 'we have to turn the heating off now'."
Rebecca tells the BBC that she can't afford to put the heating on because of rising prices and that her children struggle to keep warm bbc.co.uk/news/uk-englan…
"We have really, really struggled as a household. And to hide that from your children is one of the most difficult things to do."
The findings of our latest report paint a stark picture of the state of the nation going into the pandemic, with rising child and pensioner poverty, and very high poverty rates for larger families and single-parent families, as well as Bangladeshi, Pakistani and Black families 📈
While we don’t yet have the official poverty data for the pandemic period, we know that the impacts of the pandemic were very uneven.
During the pandemic, people on the lowest incomes were most likely to see their earnings reduced if they were working and to get into debt 💷
Our state of the nation report into poverty in the UK reveals that 1.8 million children are growing up in very deep poverty, meaning family incomes are so low that they are completely inadequate to cover the basics.
Large numbers of children were living on low incomes for prolonged periods of time in the years running up the pandemic.
For many young children, this persistence of poverty means going without essentials is all they have ever known or can remember
📈Our analysis shows that households able to work the most hours gain the most from the National Living Wage rising and changes to the #UniversalCredit taper and work allowance.
❌However, rising living costs wipe out most of these gains
A couple with two young children, with one parent working full-time and one working part-time will be better off by £7 per week
.@KatieSchmuecker: "For those in work, the change to the taper rate and work allowance, alongside the National Living Wage increase, are very positive steps, allowing low-paid workers to keep more of what they earn."
.@KatieSchmuecker: "But the reality is that millions of people who are unable to work or looking for work will not benefit from these changes. The Chancellor’s decision to ignore them today as the cost of living rises risks deepening poverty among this group."
At today’s Treasury Questions a number of MPs across the political spectrum expressed their concern at the impending cut to #UniversalCredit.
In response, Chancellor @RishiSunak said that he doesn’t accept that people will be forced into poverty as a result of the cut
Our analysis has shown that the cut to #UniversalCredit risks plunging 500,000 people into poverty including 200,000 children.
The cut will also pile unnecessary financial pressure on around 5.5 million families, both in and out of work.
Social security plays a vital role in our society, not just during a national crisis but every day.
Families across the country have shared how the impending cut will impact them. Their bills won’t get cheaper on October 6 news.sky.com/story/we-keep-…