Cost of living crisis: UK’s lowest earners still struggling, with 4.7 million behind on bills, says report
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.
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Cost of living crisis bites
‘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.”
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‘Historic’ inflation explained
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
More than 500 people arrested after Palestine Action protest – with almost half aged 60 and above
The number of people arrested after a protest in London on Saturday supporting banned group Palestine Action has risen to 532, police have said.
Around half of them (259) were aged 60 and above – including almost 100 people who were in their 70s.
Some 522 arrests were for displaying a placard in support of a proscribed organisation contrary to Section 13 of the Terrorism Act 2000, according to the Metropolitan Police.
As of 9pm on Saturday, the number was put at 466.
Membership of, or support for, Palestine Action is a criminal offence punishable by up to 14 years in prison under the Terrorism Act.
A rally supporting Palestine Action in Parliament Square. Pic: Reuters
One of the arrests took place as the Palestine Coalition march formed in Russell Square, while 521 were at the protest in Parliament Square.
Of those arrested, the biggest number (147) was in the 60-69 age group, while 97 people were aged between 70 and 79, and 15 others were between 80-89.
Six were aged 17-19, sixty-five were in the 20-29 age group, 55 were aged 30-39, 45 were aged 40-49 and 89 were in the 50-59 age group.
The average age of those arrested was 54, while some 263 of those arrested were male, 261 were female and eight either defined themselves as non-binary or did not disclose their gender.
Among the arrests, six were for assaults on officers (none were seriously injured), one was for “obstructing a constable in the execution of his/her duty”, two were for breaching Section 14 Public Order Act conditions, and one was for a racially aggravated public order offence.
People attend the protest in central London. Pic: PA
Hundreds of people attended Saturday’s demonstration in Parliament Square, organised by Defend Our Juries, with the Metropolitan Police warning it would arrest anyone expressing support for Palestine Action.
Anyone who was arrested as part of the operation was taken to one of two prisoner processing points in the Westminster area.
Those whose details could be confirmed were released on bail to appear at a police station at a future date. They were given conditions not to attend future demonstrations related to Palestine Action.
Those who refused to provide their details at the prisoner processing points and those who were found to have been arrested while already on bail, were taken to one of a number of Met Police custody suites.
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Charity Amnesty International described the mass arrests under UK terrorism law as “deeply concerning”.
The crowd, sat on the grass inside Parliament Square, could be seen writing “I oppose genocide, I support Palestine Action” on white placards at 1pm, with the vast majority remaining silent.
Meanwhile on Sunday, hundreds of people joined a march on Downing Street to urge the release of those being held in Gaza by Palestinian militant group Hamas.
A scuffle broke out after at least two men shouted “Free Palestine” in front of the march.
One man was seen being bundled to the ground close to Trafalgar Square after being surrounded by around a dozen people.
Another man was seen being moved away by police officers after he began shouting.
Amnesty International says it is “deeply concerning” that police made 474 arrests during a Palestine Action demonstration in London.
Metropolitan Police said 466 were detained under the Terrorism Act for showing support for a banned group.
Eight more people were arrested for other offences, including five for assaulting officers.
The Met said it was the most arrests it’s made related to a single operation in at least the past decade.
Pic: PA
Organiser of the event, Defend Our Juries, earlier said up to 700 people were at the event in Parliament Square and claimed police were preparing for the “largest mass arrest in their history”.
The group said those arrested included former Guantanamo Bay detainee Moazzam Begg, NHS workers, quakers and a blind wheelchair user.
Amnesty International UK’s chief executive Sacha Deshmukh said in a statement: “The protesters in Parliament Square were not inciting violence and it is entirely disproportionate to the point of absurdity to be treating them as terrorists.
“Instead of criminalising peaceful demonstrators, the government should be focusing on taking immediate and unequivocal action to put a stop to Israel’s genocide and ending any risk of UK complicity in it.”
The Met said a “significant number of people” at the event were seen “displaying placards expressing support for Palestine Action”.
Home Secretary Yvette Cooper said: “The right to protest is one we protect fiercely but this is very different from displaying support for this one specific and narrow, proscribed organisation.
“Palestine Action was proscribed based on strong security advice following serious attacks the group has committed, involving violence, significant injuries and extensive criminal damage.”
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Palestine Action supporters arrested at protest
Police said those arrested had been taken to processing points in Westminster and any whose details could be confirmed were bailed on condition they didn’t attend further Palestine Action support events.
Others whose details could not be verified, possibly because they refused to give them, were taken to custody suites across London.
Pic: PA
The protests have put a strain on authorities’ capacity to cope.
Sky News understands senior leaders in the prison service, known as “Capacity Gold”, met today to discuss how to deal with the large number of arrests as the male prison estate is close to full.
It’s understood 800 inmates were moved out of the busiest jails in and around London beforehand.
In a statement, the Metropolitan Police Federation said: “Thinking of our colleagues and wishing all assaulted officers well. Remember there are no ‘extra’ police officers – just the same ones having their days off cancelled, having to work longer shifts and being moved from other areas. Officers are emotionally and physically exhausted.”
Read more: What does proscribing a group mean?
Legislation to ban Palestine Action came into force on 5 July, making it a criminal offence to show support for the organisation, carrying a prison sentence of up to 14 years.
Defend Our Juries said earlier this week the protest would still go ahead, following several similar demonstrations since it was outlawed last month.
On Saturday, a spokesperson said: “Palestine Action and people holding cardboard signs present no danger to the public at large.”
Pic: PA
Human rights advocates Amnesty International described the arrests of so many people under UK terrorism law as “deeply concerning”.
Another march organised by the Palestine Coalition, which is a separate group, set off from Russell Square and assembled on Whitehall.
The Met Police said one person had been arrested there for showing a placard in support of Palestine Action.
Pic: Reuters
Earlier this week, three people charged as a result of illegal Palestine Action activity were named.
Jeremy Shippam, 71, of West Sussex, Judit Murray, also 71, of Surrey, and Fiona Maclean, 53, of Hackney in east London, will appear at Westminster Magistrates’ Court on 16 September.
The ban on Palestine Action faces a legal challenge in November after the High Court granted a full judicial review to Palestine Action co-founder Huda Ammori.
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