Chancellor Jeremy Hunt has been urged to announce more cost of living support for people on low incomes as bills are outpacing the expected rise in benefits.
In line with this week’s inflation announcement for September, benefits are set to go up 6.7 percent next April but this will not be enough to cover the rising costs facing low-income families.
Chris Davis, CEO of MoneyPlus, said: “We have to be realistic and accept that many household costs including basic food items, energy and clothing have increased by much more in real terms which is placing an unprecedented strain on more and more households.”
The expert added: “We hope there will be new measures announced, to help those who are most vulnerable, by the Chancellor in next month’s Autumn Statement.
“We would also urge the Government to look at the way creditors are currently contacting vulnerable customers and demanding repayments without effective coordination. This is a critical area that requires a more considered and empathetic approach.”
Mr Davis encouraged Britons who have gone into debt as they struggle to pay their bills to reach out for help.
He commented: “With more people having to make their incomes stretch and work much harder, many are relying on multiple forms of credit including overdrafts, loans and buy-now pay-later services.
“When all of these debts accumulate it become overwhelming and tempting to try and avoid the matter – it’s really important not to do that.
“Speaking up and facing financial difficulties is key to taking control and managing the situation properly – there is no shame in talking about money problems.
“Those who need advice should look for authorised firms (like ours) and charities who can offer to provide support across all debt solutions before they make an informed decision about any repayment route they might take.”
This is the full list of benefits that are set to increase 6.7 percent next April:
- Universal Credit
- Attendance Allowance
- Employment and Support Allowance (ESA)
- Housing Benefit
- Income Support
- Industrial Injuries Disablement Benefit
- Jobseeker’s Allowance (JSA)
- Maternity Allowance
- Pension Credit
- Person Independence Payment (PIP)
- Statutory maternity / paternity / adoption / shared parental pay
- Statutory sick pay
- Tax credits.
State pensioners are on track for an even bigger increase with payments set to go up 8.5 percent, in line with the average earnings metric under the triple lock.
There have been reports this could be changed so the average earnings figure not including bonuses instead being used, which would provide a 7.8 percent increase to payments.
The state pension and benefits increased by a record 10.1 percent this April after high levels of inflation last year.
For the latest personal finance news, follow us on Twitter at @ExpressMoney_.
