Skyrocketing Inflation: Adjusting to the Unfortunate New Reality
Struggling Households Face Ongoing Hardship as Inflation Persists
The Joseph Rowntree Foundation (JRF) has released a series of large-scale studies on the impact of inflation on low-income households, painting a grim picture of ongoing hardship.
According to the JRF's research, over 5 million households are going hungry due to high food prices and inadequate Universal Credit support. This figure includes 2.3 million households that have been forced to change the kind of food they buy, often making less nutritious choices.
The high levels of food inflation are pushing people to buy less fresh and healthy food and more packaged, processed, or less nutritious food. This trend is causing concern as the JRF's research shows that over half of low-income households on Universal Credit are going without three or more essentials, despite cost-of-living payments from the government.
Items like hot meals, shampoo, and a warm shower are becoming unaffordable for many, with 54% of low-income households receiving Universal Credit having to go without these essentials. The number of households going without heating or basic toiletries has remained at around seven million for over a year.
The JRF's research predicts that hardship on this scale will drive more demand onto the NHS in the years to come. In fact, the latest cost-of-living tracker by Savanta, published by the JRF, found that 5.7 million low-income households are cutting down or skipping meals due to affordability issues.
The government recently made a decision to provide five payments to people receiving benefits to help with inflation, but the JRF's research suggests it is not enough. The Senior Economist for the JRF, Chris Belfield, stated that people are unable to afford basic necessities and that this level of hardship persists as a new normal.
In response, the JRF, in conjunction with the Trussell Trust, is urging the government to implement an Essentials Guarantee. This guarantee aims to ensure the basic rate of Universal Credit at least covers life's essentials and prevents support from being pulled below a minimum level.
The ongoing hardship caused by inflation is not expected to end as prices start to fall. The latest inflation figures for the UK economy will be released tomorrow, but the JRF's research indicates that the current Universal Credit system does not account for what people need to live on, even in a good year.
Moreover, the JRF's research highlights that poverty is having a profound impact on the nation's health, and life expectancy is falling for some groups. As the cost-of-living crisis continues, it is clear that urgent action is needed to address this growing issue.
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