Foodbank chiefs greet cash cushion from Chancellor - The Worcester Observer

Foodbank chiefs greet cash cushion from Chancellor

Worcester Editorial 1st Jun, 2022   0

FOODBANK bosses have broadly welcomed the Chancellor’s £15billion bid to tackle the ongoing cost of living crisis facing households across the country, including in Worcester.

Grahame Lucas spoke out after Rishi Sunak revealed a package of measures, part funded by a £5billion windfall tax on energy companies, in the House of Commons on Thursday (May 26).

Every household will get £400 off bills from October, in the form of a one-off grant. This will replace the much-criticised £200 ‘loan’ announced by Mr Sunak earlier this year.

More than eight million of the lowest income households – those receiving Universal Credit, Tax Credits, Pension Credit and the old legacy benefits – will receive an additional £650 one-off payment.

There is also specific support for pensioners, who will get another £300, and those receiving disability benefits, who will receive a £150 payment.

The state pension triple-lock will also be reinstated next year, meaning pensions will grow in line with either average earnings, inflation or by 2.5 per cent.

Mr Lucas, manager of Worcester Foodbank, said: “This fresh package of support is far better targeted at low-income households and others most at risk of crisis.

“It will cushion the blow of soaring energy bills and other rising costs that are forcing record numbers of people to turn to us for help.”

“We’d like the Government to provide longer-term security by boosting benefits to close the gap with inflation.”

According to analysis by the Resolution Foundation, the average gains from Mr Suank’s announcement alone are £823 across the poorest fifth of households, compared to £500 for the middle fifth of households, and £296 across the richest fifth.

When combined with all policies announced – including the original energy support package and tax rises –the poorest fifth with have an extra £1,195, compared to £799 for middle-earners. The richest fifth will lose £456.

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