Rishi fund won’t stop poor being worse off
Report shreds Tories’ policy
MILLIONS of families still face a cost-of-living crisis this winter despite Rishi Sunak’s new hardship fund, a think-tank reports.
A small number of the poorest households will be eligible for a payout from their local council.
But experts say payments from the £500million fund will not cover cuts in Universal Credit.
Families with children are likely to be hit hardest by the cost-of-living squeeze, according to analysis by the Resolution Foundation.
It says a fulltime working couple with two children will be £23 a week worse off over the next six months.
The income of a single parent working part-time could fall by £20 a week.
Even someone without children working full-time on the national living wage would have their £9-a-week income boost from a planned rise wiped out by the soaring cost of living. Inflation is expected to hit 4% over winter. Mike Brewer, chief economist at the Resolution Foundation, said: “While welcome, these grants won’t come close to covering the far wider £20 a week losses that will result from cutting Universal Credit, and which will affect over four million families.” Chancellor Sunak was to announce the fund at the Tory conference next week but details were leaked.
He said: “Everyone should be able to afford the essentials, and we are committed to ensuring that is the case.” Energy costs will jump for 15 million households from today as the price cap goes up, with an average annual increase of £139. Shadow Work and Pensions Secretary Jonathan Reynolds said: “Conservative choices have created a perfect storm.”