Mini-budget a “missed chance” to help those on the lowest incomes

Money Advice Trust responds to today’s fiscal event

The Money Advice Trust has called today’s fiscal event a “missed chance” to help address the immediate challenges people on the lowest incomes are facing as a result of rising prices.

In research published earlier this week, the charity highlights the serious consequences the sustained pressure of high prices is having on millions of people.  Its findings reveal that:

·     an estimated 10.9 million (21 percent) of UK adults are already behind on one or more household bill, an increase of 3 million people since March 2022 

·     one in nine (5.6 million) have gone without food as a result of the cost of living crisis 

·     five percent of UK adults said they are currently behind on their mortgage repayment – an increase of 2 percentage points from March this year 

·     15.3 million people (29 percent) say they have had to use credit to pay for essentials – an increase of 2.1 million since March 2022. 

Joanna Elson CBE, chief executive of the Money Advice Trust, the charity that runs National Debtlineand Business Debtline, said:

“Today’s fiscal event is a missed chance to provide urgent relief to people on the lowest incomes struggling with the rising cost of living.

“We are hearing from too many people facing the hardest of choices, skipping meals, switching off their electricity and rationing water to try to keep up with rising bills.  And whilst the support announced to protect against future energy price rises for households and businesses is welcome, energy bills, and prices across the board, remain unaffordably high for many households. 

“Without targeted support to provide immediate relief to households on the lowest incomes, this winter will be incredibly tough.  It’s disappointing that the Chancellor hasn’t announced a significant uprating of benefits as part of today’s package, to help incomes keep pace with rising costs.

“I would encourage anyone worried about their finances to contact National Debtline or Business Debtline.”

National Debtline provides free, independent debt advice at www.nationaldebtline.org

Business Debtline provides, free independent advice for self-employed people and small business owners at www.businessdebtline.org