Cost of living is set to be one of the biggest challenges we face this year. With the cost of food, fuel, energy, and housing rising more quickly than average wages, too many people are likely to find the coming year harder financially. Coming after an incredibly difficult two years, we need to urgently consider what can be done to address this.
As I highlighted last year, while work remains the best way to improve household income, costs such as childcare and travel are a financial barrier to work, and are only likely to increase in the coming year. I know that some people will immediately highlight the issue of the Universal Credit uplift and whether it should be re-instated. But the fact is this is not only an issue for those on benefits. With the announcement that inflation has hit 5.4% yesterday, and is likely to rise further in the coming months, it is expected that interest rates will also continue to rise, affecting huge numbers of people with variable mortgages, and potentially lead to rent increases too if landlord’s costs increase.
The good news is that, thanks to the measures to support businesses, the economy is recovering strongly, with the number of people in work now above the level in February 2020 before the pandemic. The national unemployment rate continues to fall, now at 4.1%, and even better news is our local rate is even lower at 2.6% with businesses still looking to recruit and the number of job vacancies growing as the economy rebounds. This means more choice for both those looking to get a job, and those already in work.
The opportunities exist, and it is therefore vital that we do everything we can to help people into work, and I am calling on the Government to see what additional support may be possible to help further and remove some of the barriers to work people are facing. In the meantime, for those who are struggling due to cost of living pressures, practical advice and support are available. Citizens advice has helpful information on what to do if you are struggling with bills: https://www.citizensadvice.org.uk/debt-and-money/budgeting/budgeting/get-help-with-bills/, and your local borough councils can often also offer support and advice.
If you are struggling to access support or have specific concerns I can also help to look into matters on your behalf. If you need to contact me please email [email protected] or call on 0207 219 6783.
