This is shocking
New analysis from the New Economics Foundation (NEF) has revealed the shocking scale of economic hardship people in the UK are facing under the Tories. According to NEF’s assessment a huge proportion of households are set to be unable to afford the cost of everyday essentials.
NEF researchers found that there is set to be a significant increase in the number of people who can’t afford essentials such as replacing clothes or putting food on the table by April 2024. The think tank says that in April 2022, 36 per cent of UK house holds were unable to afford the cost of essentials after housing and childcare costs. By April 2024, this is set rise to a staggering 39 per cent. That means that almost 4 in every 10 households will be on the breadline, with 750,000 extra households brought into this precarious situation.
NEF’s analysis comes after the chancellor Jeremy Hunt announced his Autumn Statement earlier in the week. Hunt’s Statement has been widely criticised for failing to address the cost of living crisis for millions of people across the UK.
Lydia Prieg, Head of Economics at NEF, said: “While the Chancellor spoke about putting money into people’s pockets, the reality is that this Budget will make many people poorer.
“The Government had an opportunity today to provide the support people need to get through this unprecedented cost of living crisis and kick-start the economy. Instead, we see that even more people are going to be unable to afford what everybody deserves – an acceptable standard of living.
“The Chancellor may claim that his plan is working but our analysis shows that for most people this simply is not the case. What we should have seen today is a plan to raise prosperity for this and future generations, by investing in our public services and green industries, as well as ensuring benefits are properly linked to the cost of living.”
NEF’s analysis looked at all income growth between April 2022 and April 2024 including higher earnings, social security uprating, previous cost of living support and policies announced by the chancellor in the Autumn Statement. This was then compared to the minimum income standard – a measure of what people consider to be an acceptable standard of living.
Chris Jarvis is head of strategy and development at Left Foot Forward
Image credit Simon Walker / Number 10 – Creative Commons
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