Labour has warned that 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.
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.
MP, Labour’s Shadow Business Secretary
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."
Ends
Notes to editors
- 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. End Fuel Poverty Coalition
