Cost of living crisis: UK’s lowest earners still struggling, with 4.7 million behind on bills, says report

Published

2 years ago

December 14, 2022

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Finances for the UK’s lowest income households are continuing to buckle under the pressure of the cost of living crisis, with 7.2 million going without basic necessities and 4.7 million behind on their bills.

Amid soaring inflation, rising energy costs and a squeeze on household finances, it is those on the very lowest incomes that are struggling the most, according to the Joseph Rowntree Foundation (JRF).

Three-quarters (75%) of households earning less than £26,570 are going without food or other basic essentials such as toiletries.

People on Universal Credit, private renters and young adults are all seeing “rising and worrying levels of hardship”, the organisation added.

Meanwhile, nine in 10 on Universal Credit are experiencing food insecurity and going without basics.

More than seven million households are going hungry, cutting down meal sizes – or skipping them entirely – or going without showering or adequate clothing.

Some 4.7 million are in arrears with at least one household bill – almost triple the amount seen before the pandemic – and the average level of debt remains above £1,600.

Over three million households have not been able to heat their home since June, because they cannot afford the bills.

With prices continuing to skyrocket, more than half of those on low incomes said they could not afford an unexpected expense of £200.

This has driven 2.9 million households to high-cost credit loans, including with loan sharks, a payday lender, doorstep lender, or pawn shop – and half of those are in arrears.

“Of particular concern is over a third of low-income families with children cutting back on food for their children – this is a last resort and something you’re forced into, not something you choose,” the foundation said.

Some have resorted to cutting pension contributions, cancelling insurance products and taking on debt to pay bills.

‘A very different cost of living crisis’

There is a “grim financial outlook” for young adults in the UK, according to the JRF.

The report said: “18 to 34 year olds are facing a very different cost of living crisis to older adults.

“They have seen some of the largest rises in hardship over the last 12 months, and it shows no sign of slowing down.

“A lack of savings, living in the private rented sector, living in cities, and receiving lower levels of Government support all contribute to a grim financial outlook for the UK’s young adults.”

The JRF has been tracking the impact both the COVID pandemic and the cost of living crisis have had on the financial position of low-income households in the last 12 months.

“Basics have become luxuries for millions of households on low incomes,” it said in its report ‘Going Under and Without’.

“This is all taking place within the context of alarming increases in destitution and deep poverty in the UK in recent years.”

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Who is struggling the most?

Black households, those with disabled members and lone parents were among those seen struggling the most.

The report said: “The proportion of households going without who are from black households or households with mixed ethnicity also remain extremely high.

“The same holds true for families with disabled household members or members with mental health conditions.

“Lone parents and families with children are disproportionately struggling, as are households in cities across the country.

“For many, whether you have savings in the bank to get you through this crisis will be the key determinant of if you will manage.”

Urgent support needed

The foundation said the government must fill the gaps left by the Autumn Statement, including with an additional £450 cost of living payment to those who need it most.

The government also needs to “make changes” to Universal Credit so that after deductions it does not drop so low people can’t afford essentials, it added.

It said the way “punishing rate” at which deductions are made from benefits is worsening hardship.

The JRF is also asking the government to unfreeze the local housing allowance and run a large campaign to encourage the take up of benefits.

It concluded that while support packages have “slowed the deterioration of financial positions” for those on the lowest incomes, they have “not been sufficient to stem the tide of rising hardship”.

UK

It’s become almost impossible to book a driving test, instructors say

Published

2 hours ago

April 5, 2025

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It's become almost impossible to book a driving test, instructors say

It has become almost impossible to book a driving test on the government website due to bots on the booking system, driving instructors have told Sky News.

The only official way to book a practical car driving test is through the Driver and Vehicle Standards Agency (DVSA) website.

New test slots are released by the DVSA at 6am every Monday, but “no matter how fast I am, there’s nothing available”, said Aman Sanghera, a driving instructor based in west London.

When asked about the cause, she said: “All of the tests are taken by bots, they are definitely taking over the booking system.”

In this context, bots are automated software designed to mimic human behaviour and programmed to carry out actions like searching for and reserving driving test appointments on the official government website much faster than humans can.

Individuals and companies use bots to block-book driving test slots and then resell them at a profit, which is not illegal, although it is a violation of the DVSA’s terms of use.

Recent data shows the DVSA has closed over 800 business accounts for misuse of its booking service in the past two years.

Ms Sanghera, who has been in the trade for over a decade, said the usage of bots started a few months ago “but is now getting out of hand”.

She said: “I’ve actually heard about driving instructors being approached by certain individuals to then take on their IDs to log in and to run this scam.

“I struggle to actually book a test for my students, which means that by the time my students are logging in, they’ve got no chance.”

Driving instructors can book driving tests on behalf of their pupils using a dedicated service, allowing them to bypass the general queue and potentially secure test slots more efficiently.

As a result, Ms Sanghera said students are “forced to go to third-party sites” to secure “the same test dates which are then available later on during the day at a premium rate of like £200-£300”.

She added: “Given that the DVSA is a government-regulated body, one would expect a more robust and fair system to ensure affordability and accessibility for all candidates.”

The standard test fee is £62, offered by the DVSA, which is responsible for carrying out driving tests in Great Britain.

The biggest concern for the driving instructors Sky News has spoken to, including Ms Sanghera, is “the fact that students are being exploited”.

When Ahmed Ali struggled to find a practical test on the DVSA website, he turned to third-party sites – a decision he now regrets.

He said: “I’ve spent about £650 on driving tests, and I’ve sat zero tests. I’ve given all this money to third-parties that look for cancellations so they could try to get you a faster test.”

But the 20-year-old said that despite making the payments, he “didn’t hear back from them again”, which is illegal.

“When you lose all that money, you get to a point where you can’t really afford to find another driving test,” he said.

“I just feel very frustrated because I’ve spent all this money, all this time into driving, and I haven’t sat a single driving test.”

The DVSA urged applicants to only book tests via the official Gov.uk website and told Sky News it “deploys enhanced bot protection to help stop automated systems from buying up tests unfairly”.

“These applications, however, are constantly evolving and changing, and DVSA’s work on this is ongoing,” it said.

From Tuesday, the DVSA will require learner drivers to provide 10 full working days’ notice to change or cancel their car driving test without losing the test fee, up from the current three days.

Also part of the DVSA’s crackdown to reduce waiting times is a consultation expected to launch in spring 2025 “to streamline the driving test booking process” and “tighten terms and conditions”.

UK

Russell Brand charged with rape and sexual assault

Published

16 hours ago

April 4, 2025

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Russell Brand has been charged with rape and two counts of sexual assault between 1999 and 2005.

The Metropolitan Police say the 50-year-old comedian, actor and author has also been charged with one count of oral rape and one count of indecent assault.

The charges relate to four women.

He is due to appear at Westminster Magistrates’ Court on Friday 2 May.

Police have said Brand is accused of raping a woman in the Bournemouth area in 1999 and indecently assaulting a woman in the Westminster area of London in 2001.

He is also accused of orally raping and sexually assaulting a woman in Westminster in 2004.

The fourth charge alleges that a woman was sexually assaulted in Westminster between 2004 and 2005.

Police began investigating Brand, from Oxfordshire, in September 2023 after receiving a number of allegations.

The comedian has previously denied the accusations, and said all his sexual relationships were “absolutely always consensual”.

Met Police Detective Superintendent Andy Furphy, who is leading the investigation, said: “The women who have made reports continue to receive support from specially trained officers.

“The Met’s investigation remains open and detectives ask anyone who has been affected by this case, or anyone who has any information, to come forward and speak with police.”

UK

Last UK blast furnaces days from closure as Chinese owners cut off crucial supplies

Published

23 hours ago

April 4, 2025

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Last UK blast furnaces days from closure as Chinese owners cut off crucial supplies

The last blast furnaces left operating in Britain could see their fate sealed within days, after their Chinese owners took the decision to cut off the crucial supply of ingredients keeping them running.

Jingye, the owner of British Steel in Scunthorpe, has, according to union representatives, cancelled future orders for the iron ore, coal and other raw materials needed to keep the furnaces running.

The upshot is that they may have to close next month – even sooner than the earliest date suggested for its closure.

The fate of the blast furnaces – the last two domestic sources of virgin steel, made from iron ore rather than recycled – is likely to be determined in a matter of days, with the Department for Business and Trade now actively pondering nationalisation.

The upshot is that even as Britain contends with a trade war across the Atlantic, it is now working against the clock to secure the future of steelmaking at Scunthorpe.

The talks between the government and Jingye broke down last week after the Chinese company, which bought British Steel out of receivership in 2020, rejected a £500m offer of public money to replace the existing furnaces with electric arc furnaces.

The sum is the same one it offered to Tata Steel, which has shut down the other remaining UK blast furnaces in Port Talbot and is planning to build electric furnaces – which have far lower carbon emissions.

However, the owners argue that the amount is too little to justify extra investment at Scunthorpe, and said last week they were now consulting on the date of shutting both the blast furnaces and the attached steelworks.

Since British Steel is the main provider of steel rails to Network Rail – as well as other construction steels available from only a few sites in the world – the closure would leave the UK more reliant on imports for critical infrastructure sites.

However, since the site belongs to its Chinese owners, a decision to nationalise the site would involve radical steps government officials are wary of taking.

They also fear leaving taxpayers exposed to a potentially loss-making business for the long run.

The dilemma has been heightened by the sharp turn in geopolitical sentiment following Donald Trump’s return to the White House.

The incipient trade war and threatened cut in American support to Europe have sparked fresh calls for countries to act urgently to secure their own supplies of critical materials, especially those used for defence and infrastructure.

Gareth Stace, head of UK Steel, the industry lobby group, said: “Talks seem to have broken down between government and British Steel.

“My advice to government is: please, Jonathan Reynolds, Business Secretary, get back round that negotiating table, thrash out a deal, and if a deal can’t be found in the next few days, then I fear for the very future of the sector, but also here for Scunthorpe steelworks.”

British Steel declined to comment.