6 million workers have no savings as families face looming cost of living crisis


Families face benefit cuts, tax rises and an expected hike in energy bills in 2022

Families are facing a looming cost of living crisis
Families are facing a looming cost of living crisis

Over six million workers have no savings at all as they face a looming cost of living crisis, analysis shows.

A study of Government stats by Labour also showed over half of working families had less than £3,000 in household savings going into the pandemic.

Nearly 27 million people who live in working households had either no savings, savings under £1,500 or savings under £3,000 in 2020.

It comes amid fresh warnings of Britain’s looming cost of living crisis as families face benefit cuts, tax rises and an expected hike in energy bills in 2022.

Shadow Work and Pensions Secretary Jonathan Ashworth said: “Eleven years of the Tories has seen family finances hammered and now it’s shaping up to be a miserable January with heating bills rocketing, prices going up and punishing tax rises on the way.

“This is a crisis made in Downing Street.

Shadow Work and Pensions Secretary Jonathan Ashworth said families were paying the price for Boris Johnson’s failure
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Image:

Ian Vogler / Daily Mirror)

“The simple truth is people are skint with little if any savings to fall back on. Ordinary working families shouldn’t be forced to pay the price for Boris Johnson ‘s economic failure.

“Unlike the Conservatives, Labour wouldn’t be hitting working people with a tax hike, and as heating bills rise, we’d help ease the burden on households by cutting VAT on domestic energy bills now for the winter months.”

Meanwhile, a separate poll found 79% of people in Red Wall seats said the Government didn’t understand the financial pressures facing working families.

Pollster YouGov surveyed 1600 voters in 18 northern constituencies that went Tory in 2019 on behalf of the trade body Energy and Utilities Alliance (EUA).

It also found 80% of Conservative voters in 2019 now believe the issue of energy bills to be important to them, with nearly 60% stating that rising energy bills are having a big impact upon their personal finances

EUA’s Chief Executive Mike Foster said: “These numbers confirm just how deeply the cost-of-living crisis is hitting working families. And at the heart of this crisis are escalating energy bills.

“When there is such strong sentiment expressed by the public, the Government must listen. Sky-high energy bills are not the fault of consumers, but they are paying a heavy price.

“It is also very clear that politicians will pay a price for not tackling sky-high bills.”

A Government spokesman said: “We recognise people are facing pressures, which is why we’re taking £4.2billion of decisive action to help.

“We are providing extensive support to those on the lowest incomes — including putting an average of £1,000 more per year into the pockets of working families on Universal Credit, increasing the minimum wage and helping with the cost of fuel bills.

“Our £500million Household Support Fund is also giving more help to the most vulnerable, and councils have been given an extra £65million to support low income households with rent arrears.”

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www.mirror.co.uk

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George Holan

George Holan is chief editor at Plainsmen Post and has articles published in many notable publications in the last decade.

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