Category Archives: Poverty

Private rental market ‘the epicentre’ of Australia’s housing affordability problem, report finds

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Productivity Commission finds rent prices are driving demand for social housing and homelessness services

A $1.6bn agreement to help facilitate affordable housing in Australia has failed to reduce inequity and national reform is now imperative, the Productivity Commission has found.

The commission on Friday released the findings of its review into the National Housing and Homelessness Agreement (NHHA), the key document that governs federal funding to the states for housing services. The sharply worded report urges the government to overhaul commonwealth rent assistance, focus on fixing the rental crisis, and wind back concessions and grants for homebuyers in favour of funding stretched homelessness services.

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English district councils warn support services for poorest face axe

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Services such as debt advice and hardship funds under threat amid £400m bill caused by inflation

A network of councils in England is warning support services for families hit hardest by the cost of living crisis face being axed amid an unexpected £400m bill caused by soaring inflation.

Services that district councils have no legal obligation to provide – such as debt and benefits advice, hardship funds for families, homelessness prevention projects and help hubs for people facing poverty – are under threat.

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Mini-budget 2022: pound crashes as chancellor cuts stamp duty and top rate of income tax – live

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Tax cuts to cost Treasury around £37bn in 2023-24, official figures reveal

There are no urgent questions in the morning, and so Kwasi Kwarteng, the chancellor, will be delivering his statement soon after 9.30am.

The Commons starts sitting at 9.30am, but they always begin with prayers in private, and so Kwarteng will be up a few minutes later.

The last time they did it one third of the beneficiaries were people buying second homes or buy to let, so we are sceptical that this is the magic bullet to increase homeownership. What we really need to do is to build more houses and to help get people onto the property ladder by increasing the supply of housing.

When this has been done before, it has often fuelled an already hot market and many of the beneficiaries have been people buying a second or third home, rather than the first time buyers that we really want to help who are often trapped in private rented accommodation where they’re paying as much in rent every month as they would in a mortgage.

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‘We’re in a moral crisis’: US faith leaders urge lawmakers to combat poverty

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Coalition gathers on Capitol Hill to deliver impassioned demand to improve life for low-income Americans

A coalition of faith leaders gathered on Capitol Hill on Thursday to deliver an impassioned demand for more congressional action to combat poverty, telling lawmakers they have a moral obligation to improve life for low-income Americans.

The faith leaders called on the Democratic leaders of the House and Senate to take at least three votes on major progressive issues before midterm elections in November.

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Bring back eviction ban or face ‘catastrophic’ homelessness crisis, ministers told

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Sir Bob Kerslake calls on government to protect at-risk tenants as it did during pandemic

The former head of the civil service has warned of a looming “catastrophic” homelessness crisis caused by the cost of living unless the government reintroduces the eviction ban that protected tenants during the Covid-19 pandemic.

Sir Bob Kerslake, who chairs the Kerslake Commission on Homelessness and Rough Sleeping, said a failure to act “could see this become a homelessness as well as an economic crisis and the results could be catastrophic; with all the good achieved in reducing street homelessness since the pandemic lost, and any hope of the government meeting its manifesto pledge to end rough sleeping by 2024 gone”.

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Soaring costs could strip ‘basic dignity’ from millions in UK

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Annual income survey finds national minimum wage will often fail to cover even a ‘no frills’ lifestyle

Soaring inflation and energy costs will leave millions of people on low incomes thousands of pounds short of what the public say is the minimum amount needed to live with basic dignity in the UK this winter, according to an annual survey.

The annual Minimum Income Standard study is based on intensive deliberations by groups of socially representative UK residents, who agreed what a normal, no-frills lifestyle would cost and look like in 2022, taking into account housing, food, clothing, household goods, transport and social participation.

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Demand for crisis support soars even in wealthy UK towns

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Citizens Advice in affluent Wokingham says requests for help have nearly doubled in a year

A growing number of people in one of the most affluent areas of the country are struggling financially because of a huge spike in energy bills and the soaring cost of living, according to the chief executive of Wokingham Citizens Advice.

Many people who have been “just about managing” are now slipping into poverty and debt in Berkshire, said Jake Morrison, making him fearful for poorer regions throughout the country.

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Food banks warn surge in demand will prevent feeding hungriest this winter

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Exclusive: Nearly 70% of providers say they may need to turn people away or shrink the size of emergency rations

Food banks across Britain have warned of a “completely unsustainable” surge in demand that will prevent them feeding the hungriest families this winter.

Organisations representing 169 food banks told the Guardian the number of people seeking emergency help had already grown “dramatically” and predicted “bleak and disturbing” weeks ahead.

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Leading Tories call on new PM to tackle crisis facing schools over soaring costs

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Exclusive: warnings of damage to children’s education for years to come without major intervention

• ‘It’s heartbreaking’: England’s school leaders on budget shortfalls

Leading Conservatives including two former Tory education secretaries have urged the incoming prime minister to address rising cost pressures on schools as a matter of urgency, as head teachers struggle to pay soaring energy and wage bills.

With the start of the new academic year just days away, many schools in England are already overwhelmed by energy price rises in excess of 200% – with worse to come – plus the additional cost of unfunded pay rises and mounting inflation.

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People on £45,000 could struggle with bills, says chancellor

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Nadhim Zahawi says energy price hike will be ‘really hard’ for middle-earners, as well as society’s most vulnerable

People earning around £45,000 a year, as well as those on benefits, could need government help to pay their energy bills this winter, the chancellor has said.

Britain’s energy industry regulator, Ofgem, on Friday confirmed an 80% rise in the consumer price cap from October that will take a typical household’s gas and electricity bill from £1,971 to £3,549 a year.

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Liz Truss taking risk by not announcing energy plan – if she has one

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Tory MPs are jittery while Keir Starmer is gaining traction with his plan for a price freeze

It is the biggest energy crisis for decades, with experts warning that people may freeze to death this winter and many will turn off their heating altogether.

But Liz Truss’s leadership campaign has barely reacted to the news that bills will have almost tripled in a year, beyond the vague promise of help to come.

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Economists demand urgent action on energy bills to avert ‘catastrophe’

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Millions of vulnerable people will be harmed without radical policies to ease cost of living crisis, say experts

Physical and financial harm will be caused to millions of vulnerable families unless the government takes action to avert a winter catastrophe by cutting energy bills, leading economists have warned.

In the run-up to the announcement of the new energy price cap tomorrow the Resolution Foundation thinktank said radical policies such as price freezes, solidarity taxes or lower social tariffs were needed to prevent the cost of living crisis worsening.

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Labour sets out plan to link minimum wage to cost of living

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Exclusive: Earnings of lowest paid could rise by £832; lower rates for 18- to 22-year-olds to be scrapped

Labour has drawn up plans to put hundreds of pounds into the pockets of the lowest paid by instructing the Low Pay Commission to factor in living costs when it sets the minimum wage.

They also want to scrap the lower pay categories for workers aged between 18 and 22, so they would all be paid at the higher rate.

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Two-thirds of UK families could be in fuel poverty by January, research finds

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Estimated 45m people will struggle to pay energy bills this winter with predicted rises in price cap

Two-thirds of all UK households will be trapped in fuel poverty by January with planned government support leaving even middle-income households struggling to pay their bills, according to research.

It shows 18 million families, the equivalent of 45 million people, will be left trying to make ends meet after further predicted rises in the energy price cap in October and January.

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Ministers reject attempt to curb political influence over the allocation of levelling-up funds

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Analysis shows half of the most-deprived areas in England have not benefited from investment

A proposal to curb ministerial influence over the £4.8bn levelling up fund after claims of possible bias in favour of Tory seats has been rejected by the government.

Analysis has revealed more than half of the 100 most deprived areas of the country have not yet benefited from the fund. The awards are under fresh scrutiny after former chancellor Rishi Sunak told an audience in Tunbridge Wells, Kent, that he changed funding formulas to divert money from “deprived urban areas”.

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UK energy bills – six ways to reduce the impact of soaring prices

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Be it a loft insulation drive or a lower price cap, there are many ways to help – but action must be swift and extensive

The UK government has been urged to take further action to alleviate the impact of soaring energy prices, and there are a number of measures it could take.

Any rescue package would need to be swift and extensive to prevent households being plunged into poverty this winter as home energy prices surge. Ministers will also need to dig deep to prevent more businesses hit by rising energy costs from defaulting on loans and declaring themselves bankrupt.

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Penny Mordaunt denies Liz Truss is ruling out more help for poor this winter

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Truss said she would lower taxes not give ‘handouts’, but ally says future support is not off the table

A senior ally of Liz Truss has played down suggestions she ruled out more emergency support payments to help people struggling through the worsening cost of living crisis this winter.

Penny Mordaunt, who is backing the frontrunner in the Tory leadership race, said Truss’s comments had been misinterpreted and she wanted to prioritise tax cuts.

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Gang warfare traps thousands in Haiti slum as fuel crisis add to desperation

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Calls for aid to be let into Port-au-Prince district after ‘battlefield’ violence leaves dozens dead and cuts supplies of food and water

Haiti’s capital has been racked by a week of heavy fighting between gangs, with the global medical charity Médecins Sans Frontières (MSF) warning that thousands of people were trapped without food or water in one district of Port-au-Prince’s notorious Cité Soleil slum.

“We are calling on all belligerents to allow aid to enter Brooklyn and to spare civilians,” said Mumuza Muhindo, the MSF’s head of mission in Haiti, in a statement referring to the contested area within the sprawling Cité Soleil.

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Benefit cuts since 2010 increased UK child poverty in run-up to pandemic, says IFS

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Austerity-era policies meant poverty among larger families in poverty rose at significantly faster rate, says thinktank

Benefit cuts imposed by the Conservatives since 2010 pushed up child poverty before the coronavirus pandemic, according to a report warning that poorer families are also among the most exposed to the cost of living crisis.

The Institute for Fiscal Studies said relative child poverty rose to the highest level since 2007 immediately before Covid-19 hit, as the incomes of poorer families with children fell further behind due to austerity.

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North-east England overtakes London as UK’s child poverty hotspot

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Almost two-fifths of children in north-east live in poverty after a decade of decline as campaigners warn of worse to come

The north-east of England has the highest rate of child poverty of anywhere in the UK, for the first time overtaking London as the nation’s hotspot for hardship and deprivation, new analysis shows.

Although the latest UK-wide figures show child poverty rates overall fell slightly in the first year of the pandemic due to the temporary £20 weekly uplift to universal credit, detailed breakdown shows child poverty continued to rise in areas like Sunderland, Newcastle and Middlesbrough.

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