The local Footprint Trust has welcomed some elements of the Autumn Statement announcement that energy cost support is to be targeted to poorer households.
However, it has raised concerns that others will have a less generous amount, meaning thousands of Island households will still face higher bills.
Sharpest downturn in living standards since 2013
Island working people will suffer the sharpest downturn in living standards since 2013 as real pay falls.
The energy bill for a typical average household will rise to £3,000 in April, from £2,500.
Driven into fuel poverty
The Trust points out those living in poorly insulated and maintained properties are already paying well above this average, and have been driven into fuel poverty.
Those households who are off-gas, mainly in south and west Wight will be amongst the worst hit.
Additional cost-of-living payments for some
The chancellor also announced additional cost-of-living payments for the most vulnerable.
This amounts to £900 to households on means-tested benefits, £300 to pensioner households, and £150 for individuals on disability benefit.
Savill: Difficult choices between eating and heating
Paul Savill of Citizens Advice IW said,
“The country is facing the biggest drop in living standards since 2013.
“This will hit a large cross-section of the public including middle income working families, along with those on very low incomes.
“This in turn will lead to budgeting issues and people making difficult choices between eating and heating.”
Harrington-Vail: Many organisations are under severe financial strain
Ray Harrington-Vail, the Senior Officer at the Footprint Trust, who is also a trustee of IW Community Action, said,
“Island charities and churches are at the frontline of the cost-of-living crisis helping those in most need.
“Our sector is providing warm spaces, essential food and meals, mental health services, and guidance on energy matters and benefits and other assistance available.
“It is disappointing that the chancellor did not mention any support for charities. Many organisations are under severe financial strain, facing soaring utility bills and declining income, but a massive rising demand for their services.”
Get in touch
Those struggling with budgeting and debt should contact Citizens Advice IW on 08001 44 88 48, for energy help and guidance contact The Footprint Trust on 822282.
Budget In Summary…
- UK national living wage for people over 23 to increase from £9.50 to £10.42 an hour from next April
- State pension payments, means-tested and disability benefits to increase by 10.1 per cent, in line with inflation
- Top 45 per cent additional rate of income tax will be paid on earnings over £125,140, instead of £150,000
- Income tax personal allowance and higher rate thresholds frozen for further two years, until April 2028
- Main National Insurance and inheritance tax thresholds also frozen for further two years, until April 2028
- Tax-free allowances for dividend and capital gains tax also due to be cut next year and in 2024
- Local councils in England will be able to hike council tax up to 5 per cent a year without a local vote, instead of 3 per cent currently
News shared by Ray on behalf of Footprint Trust. Ed
