North East organisations join call for Government to guarantee essentials for low-income households

Three North East organisations have joined a national call, asking the Government to increase the basic rate of Universal Credit to cover the cost of basic essentials.

Karbon Homes, North East Child Poverty Commission and Children North East have joined a collective of 90 organisations across the country in signing a #GuaranteeEssentials letter, asking politicians to help the millions of households still going without essentials such as food and clothing, by increasing the basic rate of UC to reflect the rising costs of these items.

The letter, headed by the Joseph Rowntree Foundation and the Trussell Trust, outlines that the price increase of these everyday items, such as food, clothing and other vital household items, has soared since 2021 and, as a result, nine in ten low-income households on Universal Credit are currently going without.

Paul Fiddaman, chief executive of Karbon Homes, commented: “As a housing provider, we see, first-hand, the challenges our customers are facing each day and the importance of our social security system in acting as the safety net it’s intended to.

“That’s why we’re backing this campaign and calling on politicians to ensure that the basic rate of Universal Credit at least covers the cost of life’s essentials, with support never being pulled below that level.”

Research by JRF and the Trussell Trust published earlier this year showed how the shortfall between the basic rate of Universal Credit and the cost of essentials, such as food, bills and vital household items, is a key driver behind increasing levels of hardship.

Katie Schmuecker, JRF principal policy adviser, added: “Our social security system is meant to give us peace of mind that the support will be there when we need it. But the price of food we all need to eat and the bills we all must pay are still too often outpacing the income of those on Universal Credit, many of whom will be in work.

“We must remind political leaders that, whether they like it or not, this is driving millions of people into hardship and it is not a problem that will go away without bold and concerted action. It is time to build a system that is needs-tested, where the support people get is linked to the actual costs of essentials to meet basic needs.”

Over two thirds of people in poverty (69 per cent) would gain from the Essentials Guarantee which would benefit everyone in receipt of Universal Credit. It would also lift around 1.8 million people out of poverty altogether, including 600,000 children.

By Matthew Neville – Senior Correspondent, Bdaily

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