Families the Chancellor has pledged to help will still be worse off next year even with the support announced in today’s Autumn Statement
The Joseph Rowntree Foundation (JRF) looked at how Jeremy Hunt’s decisions will impact some example households and found one-off payments and uprating benefits do not make up for rising rents, energy bills and other costs.
According to JRF’s analysis, someone unemployed, on a low income, aged over 25 renting a room will be £653 worse off.
It's an example of how many people will face the worst winter, JRF says, falling behind on bills, unable to afford hot meals. It will be very difficult for these people to wait for further support next April, and anything but an increase to their living standards is unlikely to stop them going without the essentials.
Meanwhile, a low-income couple in work with two children will be £103 worse off in 2023/24 than this year.
Examples
| Change in regular income | £406 |
|---|---|
| Removal of last year's one-off payments | -£1,200 |
| This year's one-off payments | £900 |
| Net change in incomes | £106 |
| Change in energy bills | £828 |
| Reduction due to Energy Price Guarantee (EPG) | -£357 |
| Change in rents | £197 |
| Change in other costs | £90 |
| Net change in spending | £759 |
| Net decrease in living standards | -£653 |
| % of possible decrease in living standards mitigated in Autumn Statement | 66% |
| Change in regular income | £2,248 |
|---|---|
| Removal of last year's one-off payments | -£1,200 |
| This year's one-off payments | £900 |
| Net change in incomes | £1,948 |
| Change in energy bills | £1,399 |
| Reduction due to Energy Price Guarantee (EPG) | -£571 |
| Change in rents | £371 |
| Change in council tax (original) | £63 |
| Change in council tax (additional) | £42 |
| Change in other costs | £807 |
| Net change in spending | £2,052 |
| Net decrease in living standards | -£103 |
| % of possible decrease in living standards mitigated in Autumn Statement | 94% |
Notes
Both households are assumed to be renting in a mid-cost area (Kernow West). They are assumed to be paying for energy by direct debit.
Read the latest OBR’s Economic and Fiscal Outlook.
This news article is part of the cost of living topic.
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