New PM ‘must double’ help for households to £30bn

The new prime minister will need to at least double the amount of cost of living support available - from £15bn to £30bn - in order to protect Britain’s most vulnerable households this winter, experts have told The Independent.

- ANDREW WOODCOCK

The warning from anti-poverty campaigners came as the Conservative leadership frontrunner Liz Truss declared that she will not offer “handouts” to those hit by unprecedented rises in energy prices, favouring instead tax cuts which experts warn will disproportionately benefit the rich.

Her comments earned a rebuke from leadership rival Rishi Sunak, who said it was “simply wrong” to rule out an increase in direct support to households at a time when the energy price cap could leap from £1,971 now to as much as £3,700 in the spring.

Sara Ogilvie, director of policy at Child Poverty Action Group, told The Independent that the prospect of steep price rises on essentials like food and power were “terrifying” for millions of families who had already cut expenditure to the bone after a decade of benefit freezes and low pay. “Their cupboards are bare,” she said. “Families are terrified – it’s not an exaggeration to say that.

 “Four million children are already living in poverty, but we now know that for families on the lower-income bracket – and even moving into middle incomes now – their income is just not going to match their outgoings, an ever-increasing amount is going on essentials and they are worried they are not going to be able to pay their bills any more.”

Mr Sunak’s promise of an uprating of benefits next April in line with September’s expected inflation rate of around 10 per cent will not be enough, said Ms Ogilvie, who said the hike should be brought forward to October.