New Prime Minister, Andy Burnham, has vowed to ease the cost of living pressures on households across the UK and has already revealed a number of measures.
What does a charity that works face-to-face with people across the UK, particularly those most affected by rising costs, recommend the government should do to really tackle the root causes of poverty? Before we reveal the answer, here’s a reminder of what’s been announced so far…
Andy Burnham’s policy announcements so far:
This one makes a small difference but energy bills are rising again from October for anyone not on a fixed tariff so it might not feel like much has changed for many. The government says this will save the average household about £45 a year. However the 4% price rise from October means a typical dual-fuel bill will increase by £60.
This one is certainly a positive if you catch the bus regularly, though issues around connectivity and reliability remain, particularly affecting those seeking to get to work in the gig economy and living in rural areas.’
This isn’t a household benefit directly, but is intended to reduce costs for businesses and protect local venues.
£442m has been committed to housing, healthcare and addiction support, with the government targeting an end to rough sleeping in England.
The government is proceeding with a £39bn, 10-year affordable-homes programme, with Burnham pushing for a greater role for councils in building the homes.
The Government has announced a crackdown on rogue enforcement agents, also known as bailiffs. It’s bringing in tougher regulation to better protect people facing debt in England and Wales through increased oversight of the enforcement industry
Private enforcement agents will be held to consistent professional standards and those facing enforcement action will have access to an independent complaints process — strengthening the rights of many of CAP’s clients who are facing vulnerable situations.
The government has announced a new unit in the Office for Equality and Opportunity to help disadvantaged communities and root out child poverty.
One of the unit’s early priorities will be the introduction of the socio-economic duty – a new power in the Equality Act that will legally require public bodies to consider how to improve the lives of lower-income families as part of decisions around issues like transport, services and budgets.
CAP has been campaigning for regulation of the enforcement sector and the introduction of a socio-economic duty for a long time so we welcome these measures. CAP has also been highlighting the impacts of the high costs of energy and public transport, so steps being taken in these areas will also help reduce the pressures on people’s budgets. But as the Autumn Budget approaches, we are calling on the government to step up their efforts to tackle poverty.
Here’s what we want to see:
Introduce a social tariff for energy and water
This would ensure those on the lowest incomes and facing the most difficult circumstances across the UK, would be able to pay a discounted rate for their energy and water. Helping to end the postcode lottery of support and ensure everyone who is struggling to pay for these essentials can use the water and energy they need.
Make credit more affordable
Amend the Financial Services & Markets Bill to enhance consumer protections and expand access to affordable community credit. This will ensure that people can access credit that is helpful but won’t charge them high interest rates.
Remove the five week wait for Universal Credit
When people apply for Universal Credit there is a five week wait for their first payment which means people are left without any income during that period. As many people are applying for Universal Credit as a last resort they often do not have money to fall back over this five week period. Without the money to cover this five week period, people are often forced into impossible decisions which results in people going without essentials, falling behind on bill payments, turning to unaffordable credit, or taking an Advance Payment that gets deducted from their payment going forward. Removing this would remove a policy that is pushing people into debt and financial difficulty.
Regulate the entire enforcement sector
Give the Enforcement Conduct Board (ECB) full regulatory powers to crack down on any enforcement agents, also known as bailiffs, not treating vulnerable people with respect, care and dignity. Also extend the oversight to include in-house enforcement teams in Local Authorities.
