More than a million face poverty amid rising living costs

More than a million face poverty amid rising living costs

More than a million people face being forced into poverty amid the rising cost of living, it has been reported. 

According to the Resolution Foundation, around 1.3 million people would not be able to afford “basic necessities” after falling into poverty by next year. 

They said households would be squeezed by the lack of support people are receiving on low incomes, exacerbated by constant rising prices. 

During the chancellor’s Spring Statement, he announced that the government would be standing with struggling families. 

However, the Foundation has described Mr Sunak’s measures as a “big but poorly targeted policy package” 

Among the chancellor’s announcements was a 5p cut to fuel duty, and an increased threshold for workers paying National Insurance. 

The Resolution Foundation’s chief executive, Torsten Bell, said the measures would help families on higher and middle-incomes, thus leaving low income families in the dark.

Mr Sunak refused calls to abolish April’s National Insurance rise of 1.25p in the pound, in addition to an increase in benefits to meet the rising cost of living. 

According to analysis by the Resolution Foundation, around 1.3 million people, which includes 500,00 children will be forced into “absolute” poverty next year. 

Torsten Bell told BBC’s Today: 

“It means we’re all getting worse off, and at the bottom end you’re having to cut essentials because you don’t have lots of luxury spending to go in the first place. I think that is really serious” 

The Foundation claimed that the typical household income would drop by £1,100 next year. 

Rachel Reeves, Labour’s shadow chancellor said Mr Sunak’s Spring Statement failed to understand the scale of the rising living costs that workers and pensioners are facing.

“In eight days, people’s energy bills will be rising by 54%, two weeks today the chancellor’s tax hike will start hitting working people and their employers”, she added.