Former PM Gordon Brown calls for more support to prevent "poverty time-bomb"
An estimated 53% of the UK population could be in fuel poverty come October
Anti-poverty coalition call for more government support to prevent a “poverty time-bomb”. Former PM Gordon Brown has said more than half the UK population could be in fuel poverty come October.
Writing in The Big Issue magazine, Gordon Brown warned that millions of people are standing on the edge of a financial precipice.
He said: "We are calling for urgent measures to cover the cost of a further £1,000+ rise in fuel bills on top of April's already painful increases.
"The grim facts right now are that 27.7 million people in 14.5m households are staring at fuel poverty in October - an unprecedented 53% of the United Kingdom's population."
He said the regional variations were "as big as they are frightening", continuing: "The fuel poor will range from 47.5% in London to 60.8% in Wales and 61.5% in Scotland.
"And, if nothing is done before another fuel price rise hits in January, the fuel poor could rise to 39.4m in 15.2m households - 56 % of the country, with even more stark regional variations."
Millions will be left in dire poverty
Mr Brown said one-third of people's statutory pension looks set to be taken up just paying fuel bills.
"And for our children, 40% of whom are already going without what is needed to have a decent start in life, the future is becoming yet bleaker.
"I estimate that one in every two children will lose out as October fuel and food bills eat up the lion's share of a family weekly budget.
"We now welcome The Big Issue into our coalition and we value the support of this great organisation as we come together to expose the financial time-bomb that will explode on families eight weeks from now, on October 1."
Lord Bird, founder of the Big Issue and crossbench peer, said: "We are joining the Anti-Poverty Coalition to protect families and individuals from the looming poverty crisis this autumn.
"If the Government does not take heed and act now, millions of people will be left in dire poverty, or worse, lose their homes."
Paul McNamee, editor of The Big Issue, said: "The crisis of domestic energy bills and crippling costs is hammering towards us all.
"At The Big Issue, we're backing Gordon Brown's call for an emergency budget to plot a path to help the population.
"The time for action, not trite culture war soundbites, is here."
Cost of living
Interest rates and inflation go up
Inflation rose by 8.8% in the 12 months to January 2023, down from 9.2% in December 2022. With interest rates also rising to 4%, those saving money will earn more interest on their finances, whilst those paying mortgages would pay more interest to the bank.
Energy bills
The price of energy went up incredibly as the cost of living crisis hit, with the gas price spike caused largely by the war in Ukraine. The price cap - which is set by an independent regulator to help offset costs onto customers - was set to rise to £3,549 for an average home in October but a price freeze from the government restricted the typical bill to £2,500. That's still an increase of 27% from the previous energy cap and as it's a cap on unit cost, the more energy you use the higher your bill will be.
Food prices
The cost of a weekly shop also has gone up as a result of the cost of living crisis. As a result of the war in Ukraine, a number of products including cooking oils and wheat have been disrupted. This means that several products are now considerably more expensive, driving bills up for customers.
Prices at the pumps
The average cost of petrol has also rose to unprecedented levels. Supply lines for petrol have been thrown into doubt as a result of the war in Ukraine, as Russia is a large export partner for gas, oil and fuel. In April 2022, the average price for a litre of petrol on the forecourt was 160.2p, whilst a litre of diesel would cost 170.5p. By late June 2022 the price had risen to an average of 190.9p for a litre of unleaded and 198.9p for a litre of diesel. In March 2023 the price wass on average of 147.03 in petrol and 167.04 in diesel.
Average cost of filling up a car with petrol hits £100
On 9th June 2022, the average cost of filling up a car with petrol hit £100 for the first time ever. Diesel had already hit that milestone. It comes as the cost of fuel hit a record high of one pound eighty a litre. The 2p rise was the biggest daily jump in 17 years. Prices have dropped by at least 20p per litre since the high point.