Latest government budget doesn't address cost of living crisis

Yesterday’s Autumn Budget did little to allay those fears.

The government’s latest spending plans come as the Office for Budget Responsibility predicts that living standards will fall by 7% over the next few years.

Many of the people we work with are already struggling to make ends meet and keep a roof over their head. For them, the Autumn Budget didn’t go far enough.

We did welcome the news that pensions and means-tested benefits will rise in line with inflation. We work with many people who receive them and are glad to hear they will have more of a financial buffer. These changes though won’t come in until April next year and many people are struggling now.

It’s promising that the National Living Wage will rise from £9.50 per hour to £10.42 per hour. However, it still lags behind the UK living wage – the amount that The Living Wage Foundation calculates is actually needed to survive (£10.90 per hour in the UK and £11.95 per hour in London). Central government will need to keep this under review to ensure people’s wages keep up with rising costs.

The housing crisis is one of the biggest challenges we face. The government announced that social housing rents cannot increase more than 7% next year - a positive step.

But private renters who rely on housing benefit to keep a roof over their heads face a bleak winter. Local Housing Allowance rates, used to work out how much housing benefit people can receive, remain frozen. The gap between what they receive and the cost of renting continues to rise. With living costs also rising, many households will have to choose between covering their rent or paying for essentials like heating and food.

Rising council taxes will also heap extra pressure onto struggling households. The government hopes this will help cash-strapped councils balance their budgets and avoid cutting vital services (like Kent homelessness services) but the money this raises won’t be enough. Councils need proper government funding to keep services running.

Ultimately, it’s going to be a very difficult time for many people. Porchlight and similar organisations will do what we can to help, but the government needs to step up and do more to address the very real issues that are pushing people into poverty and homelessness.