Households across the UK, including here in Trafford, are having to cope with major increases in the cost of living. These rises are affecting essential, unavoidable costs such as food prices and energy bills. Domestic energy bills are expected to increase further in the spring, by as much as 50%. Food costs are already rising by 10% per year. 

When essential items increase it is those households on low and modest incomes who face the greatest burden as they have very little scope to absorb higher prices. This means already limited budgets are stretched even further.

Despite full awareness of this, the government has chosen to reduce the amount of support it provides to low income working and non-working households over the last 6 months through the £20 a week cut to Universal Credit.

This increase in the cost of living is happening in the context of an eleven year period during which working age benefits have been cut and wages have stagnated in a number of sectors. Household will face a further hit when National Insurance contribution go up in April.

The Government’s response to this situation has been piecemeal and poorly targeted. One off and temporary support, such as the hardship grants provided to low income families during the pandemic, do not represent an adequate response to the financial challenges facing many of our residents. Councils have been left high and dry by the government, without adequate long-term funding or long-term support to support residents facing financial hardship through things like local welfare assistance schemes, such as Trafford Assist.

The financial pressure facing many families could not be more acute and the situation shows little sign of easing. The independent Institute for Fiscal Studies has said that the government’s current approach to support households on low incomes is inadequate and has said £3 billion needs pumping into the welfare system in response to soaring energy bills and mounting inflationary pressure. Instead of a planned 3.1% increase in the value of benefits in April, it said payments needed to rise by about 6% to protect the poorest in society from high inflation hurting their finances.

Whilst this Council is committed to doing what we can to address poverty and the financial hardship being faced by our residents, we urgently need the government to step in and provide an adequate response to rising living costs and growing levels of poverty.

This Council calls on the government to:

-       Introduce a windfall tax on oil and gas companies. The revenue raised should be used to support families with soaring energy prices and remove VAT on domestic energy bills for a minimum of 12 months.

-       Reverse the £20 per week cut to Universal Credit.

-       Increase benefits by more than planned in order to reflect the rising living costs facing low income families and make a long-term commitment to ensuring the benefits system provides both working and non-working households with a decent standard of living.

-       Provide long-term dedicated funding to councils towards local welfare assistance schemes so that local authorities can respond to the needs of residents facing severe financial hardship.

-       Provide permanent support towards meal costs to Free School Meal eligible families during the school holidays.

It was moved and seconded that:

“Households across the UK, including here in Trafford, are having to cope with major increases in the cost of living. These rises are affecting essential, unavoidable costs such as food prices and energy bills. Domestic energy bills are expected to increase further in the spring, by as much as 50%. Food costs are already rising by 10% per year. 

When essential items increase it is those households on low and modest incomes who face the greatest burden as they have very little scope to absorb higher prices. This means already limited budgets are stretched even further.

Despite full awareness of this, the government has chosen to reduce the amount of support it provides to low income working and non-working households over the last 6 months through the £20 a week cut to Universal Credit.

This increase in the cost of living is happening in the context of an eleven year period during which working age benefits have been cut and wages have stagnated in a number of sectors. Household will face a further hit when National Insurance contribution go up in April.

The Government’s response to this situation has been piecemeal and poorly targeted. One off and temporary support, such as the hardship grants provided to low income families during the pandemic, do not represent an adequate response to the financial challenges facing many of our residents. Councils have been left high and dry by the government, without adequate long-term funding or long-term support to support residents facing financial hardship through things like local welfare assistance schemes, such as Trafford Assist.

The financial pressure facing many families could not be more acute and the situation shows little sign of easing. The independent Institute for Fiscal Studies has said that the government’s current approach to support households on low incomes is inadequate and has said £3 billion needs pumping into the welfare system in response to soaring energy bills and mounting inflationary pressure. Instead of a planned 3.1% increase in the value of benefits in April, it said payments needed to rise by about 6% to protect the poorest in society from high inflation hurting their finances.

Whilst this Council is committed to doing what we can to address poverty and the financial hardship being faced by our residents, we urgently need the government to step in and provide an adequate response to rising living costs and growing levels of poverty.

This Council calls on the government to:

-       Introduce a windfall tax on oil and gas companies. The revenue raised should be used to support families with soaring energy prices and remove VAT on domestic energy bills for a minimum of 12 months.

-       Reverse the £20 per week cut to Universal Credit.

-       Increase benefits by more than planned in order to reflect the rising living costs facing low income families and make a long-term commitment to ensuring the benefits system provides both working and non-working households with a decent standard of living.

-       Provide long-term dedicated funding to councils towards local welfare assistance schemes so that local authorities can respond to the needs of residents facing severe financial hardship.

-       Provide permanent support towards meal costs to Free School Meal eligible families during the school holidays.”

(Note: During the debate on the Motion, the time being 8:13 p.m., the Mayor indicated that speeches on this matter would now be limited to a maximum of two minutes per speaker.)

Following the debate on the matter, the Motion was put to the vote and declared carried.

RESOLVED: That households across the UK, including here in Trafford, are having to cope with major increases in the cost of living. These rises are affecting essential, unavoidable costs such as food prices and energy bills. Domestic energy bills are expected to increase further in the spring, by as much as 50%. Food costs are already rising by 10% per year. 

When essential items increase it is those households on low and modest incomes who face the greatest burden as they have very little scope to absorb higher prices. This means already limited budgets are stretched even further.

Despite full awareness of this, the government has chosen to reduce the amount of support it provides to low income working and non-working households over the last 6 months through the £20 a week cut to Universal Credit.

This increase in the cost of living is happening in the context of an eleven year period during which working age benefits have been cut and wages have stagnated in a number of sectors. Household will face a further hit when National Insurance contribution go up in April.

The Government’s response to this situation has been piecemeal and poorly targeted. One off and temporary support, such as the hardship grants provided to low income families during the pandemic, do not represent an adequate response to the financial challenges facing many of our residents. Councils have been left high and dry by the government, without adequate long-term funding or long-term support to support residents facing financial hardship through things like local welfare assistance schemes, such as Trafford Assist.

The financial pressure facing many families could not be more acute and the situation shows little sign of easing. The independent Institute for Fiscal Studies has said that the government’s current approach to support households on low incomes is inadequate and has said £3 billion needs pumping into the welfare system in response to soaring energy bills and mounting inflationary pressure. Instead of a planned 3.1% increase in the value of benefits in April, it said payments needed to rise by about 6% to protect the poorest in society from high inflation hurting their finances.

Whilst this Council is committed to doing what we can to address poverty and the financial hardship being faced by our residents, we urgently need the government to step in and provide an adequate response to rising living costs and growing levels of poverty.

This Council calls on the government to:

-         Introduce a windfall tax on oil and gas companies. The revenue raised should be used to support families with soaring energy prices and remove VAT on domestic energy bills for a minimum of 12 months.

-         Reverse the £20 per week cut to Universal Credit.

-         Increase benefits by more than planned in order to reflect the rising living costs facing low income families and make a long-term commitment to ensuring the benefits system provides both working and non-working households with a decent standard of living.

-         Provide long-term dedicated funding to councils towards local welfare assistance schemes so that local authorities can respond to the needs of residents facing severe financial hardship.

-         Provide permanent support towards meal costs to Free School Meal eligible families during the school holidays.