CPP responds to government's latest cost of living measures

CPP responds to government's latest cost of living measures

26 May 2022

26 May 2022

Ben Franklin, Director of the Centre for Progressive Policy said:

“The Chancellor’s choice to target significant cash support towards people on the lowest incomes is the right one. The impact of rising prices on this group is disastrous; the poorest households can expect to spend around a quarter of their incomes on energy bills this autumn.

“But the choice to commit £12bn to a payment for every household in the UK is an inefficient use of taxpayer money at a time when public finances are already strained. It is badly targeted and risks locking in high inflation, a situation that will always hit the poorest hardest.

“We have now faced two huge economic shocks in quick succession, both of which have laid bare the failure of our social security system to keep people afloat. Without longer-term action to improve benefits and boost economic opportunities, the risk of widespread future hardship remains high.”