Skyrocketing Prices: The 'Dreadful New Standard'
A new study by Savanta, published by the Joseph Rowntree Foundation (JRF), has revealed that over 54% of low-income households receiving Universal Credit are going without three or more essentials hoodie. This latest research is part of a series of large-scale studies conducted by Savanta, which has examined over 4000 households on low incomes.
The research highlights the ongoing struggle faced by many households, with people unable to afford hot meals, shampoo, or a warm shower. Rachelle Earwaker, Senior Economist for the JRF, stated that this hardship has become a horrendous new normal.
The situation remains dire, despite the government's cost-of-living payments. Over 2.3 million low-income households on Universal Credit have been forced to change the kind of food they buy, often resorting to less nutritious options. The high levels of food inflation are forcing people to buy less fresh and healthy food and more packaged, processed, or less nutritious food.
The JRF states that the extraordinary levels of food inflation are having a profound impact on the nation's health. In fact, life expectancy is falling for some groups due to the hardship caused by the cost-of-living crisis.
The latest cost-of-living tracker by Savanta found that 5.7 million low-income households are cutting down or skipping meals due to affordability issues. The number of households going without heating or basic toiletries has remained at around seven million for over a year.
The cost-of-living crisis is also expected to drive more demand onto the NHS over the years to come. Earlier this year, the government made the decision to provide five payments to people who receive benefits to help them with inflation. However, the JRF argues that these payments are not providing enough breathing space for people who desperately need it.
The JRF, along with the Trussell Trust, is urging the government to implement an Essentials Guarantee to ensure that the basic rate of Universal Credit at least covers life's essentials hoodie. Such a guarantee would ensure that support can never be pulled below the level that covers life's essentials.
Unfortunately, there are no publicly available, specific plans by any government to discuss or implement an "Essentials Guarantee" in the near future. The cost-of-living crisis is expected to persist even as inflation starts to fall, meaning that the hardship faced by millions of households may continue for some time.
The latest inflation figures will be released tomorrow to assess the UK economy's performance. However, for many low-income households, the state of the economy may feel far removed from their daily struggles to afford essentials hoodie.
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