Soha Housing is part of a national call on Prime Minister Rishi Sunak to honour his commitment to immediately uprate benefits in line with by inflation.
If this does not happen, low-income households will struggle even harder over the winter.
A letter (see it in full at the foot of this post) signed by 120 organisations, including PlaceShapers, the national network of place-based social landlords of which we are a part, urges Rishi Sunak to honour the promise he made this spring to increase benefits in line with inflation.
PlaceShapers and partners call on the PM, who, as Chancellor, acted decisively to protect low-income households and pledged to increase benefits in line with inflation, to do this as soon as possible rather than waiting until April next year.
People on the lowest incomes are already disconnecting their gas or electricity and unable to afford to cook hot meals for themselves and their children. The benefits system provides an invaluable safety net for families across the country, including the 41% of recipients of Universal Credit who are in work. High inflation is shrinking financial support to an unsustainable point. The consequences, such as increased homelessness and physical and mental ill-health, are placing additional strain on already stretched public services. It’s a false economy not to increase this support in line with inflation.”
In May, Mr Sunak – then Chancellor – said benefits will be uprated as usual in April by September’s Consumer Price Index (CPI) inflation figure, which was over 10%.
Food prices are now rising faster than at any point since 1980 and low-income households are bearing the brunt of this. Current benefit rates leave households unable to afford the essentials, with debt, homelessness and foodbank use all on the rise even before this current cost-of-living crisis.
JRF Senior Policy Advisor Iain Porter said: “Families on low incomes desperately need stability and certainty, as they try to afford the essentials, pay their rent, and keep food on the table. Rishi Sunak personally pledged to go ahead with the usual uprating of benefits in line with inflation, and Chancellor Jeremy Hunt promised last week that he would act with compassion and protect the most vulnerable.
“The new government must show it is as serious about protecting its citizens from harm as it is about calming the markets. It can do this by moving quickly to take away a huge source of anxiety for millions and confirming that benefits will be uprated as soon as possible in line with September’s inflation rate of 10.1% – a position the public agree with.”
The open letter in full
Dear Prime Minister,
We are writing to congratulate you on your appointment as Prime Minister. During your time as Chancellor you acted decisively to protect low-income households and pledged to increase benefits in line with inflation as normal. We are now calling on you to honour that promise and to implement the uprating as soon as possible rather than waiting until April next year.
Households on low incomes desperately need stability and certainty as they try to afford the essentials, pay their rent, and keep food on the table. Bringing forward the usual uprating of benefits by September’s inflation rate would support people most in need through a difficult winter, including those who are sick or disabled, caring for children or others, and those with low earnings or looking for work. It would also send a clear signal that your government is serious about prioritising the needs of the most vulnerable, as the Chancellor promised to last week.
Many of your colleagues across the Conservative Party made clear this month that they agree that increasing benefits by inflation is both necessary and the right thing to do. The public is supportive too, with 61% of people agreeing that benefits should go up with inflation.
Previous decisions not to go ahead with the normal uprating of benefits have left our social security safety net threadbare. Current benefit rates leave households unable to afford even the essentials, with debt, homelessness and foodbank use all on the rise long before this crisis hit. Failing to uprate with inflation would amount to the biggest permanent real-terms cut to the basic rate of benefits ever made in a single year. Even if uprating goes ahead as normal, the support our social security system provides will still be at historic lows.
The cost of living crisis continues to intensify. Inflation is forecast to remain extremely high for many months to come. In the face of such economic uncertainty it is right that you provide households on low incomes with the reassurance they need and uprate benefits by inflation as soon as possible.
Yours sincerely,
Matthew Walker, Chair of Place Shapers and
Notes
The letter was sent on Thursday 27 October by the Joseph Rowntree Foundation (www.jrf.org.uk) on behalf of 120 organisations.
About PlaceShapers
PlaceShapers is a national network of place-based housing organisations that help communities to thrive. We connect, communicate and collaborate for greater influence. Our members manage over one million homes and provide housing for one in four households in social housing. Further information at www.placeshapers.org