29 per cent of Londoners live in poverty, compared to 21 per cent nationally.
The London Assembly has today called on the Chair of the Assembly and the Mayor of London to write separately to the Prime Minister and the Secretary of State for Work and Pensions to declare a ‘Cost of Living Emergency’.
The letters will outline a number of asks - the Government should reduce VAT, reintroduce the ‘triple lock’ on pensions and increase all benefits in line with inflation.
The Assembly also called on the Mayor to provide regular monthly updates on how Londoners are using the newly created Cost of Living hub.
Hina Bokhari AM, who proposed the motion said:
“Even before the cost of living crisis, London was facing the highest level of poverty of any city or region in the UK.
“We now have an emergency situation, not just hundreds but soon thousands of families will be facing the horrible dilemma or whether to eat or heat their homes.
“The Chancellor’s measures are not only late, but they are also insufficient. Bold and immediate action is necessary to stop far more London families being driven into poverty. We must act with immediate urgency now!”
Léonie Cooper AM, who seconded the motion said:
“The Cost of Living Crisis is out of control. Londoners are struggling to heat their homes and afford their weekly shop. With a third of Londoners now living in poverty, it’s time for the Government to step up.
“While I welcome the Government U-turn on providing some desperately needed support, hundreds of thousands of Londoners are ineligible for or underserved by the Chancellor’s measures.
“That’s why I’m renewing my calls for the Government to reinstate the Universal Credit uplift, bring benefits up in line with inflation and put a pause on the rise in National Insurance.
“I would encourage Londoners to make use of the Mayor’s Cost of Living Hub, which can signpost those in need to support and advice with bills, debt and emergencies.”
The full text of the motion is:
This Assembly notes with deep concern that London faces the highest levels of poverty of any city or region in the UK, with more than one in three of London’s children (over 700,000) living in poverty. [1]
29% of Londoners live in poverty, compared to 21% nationally. Of these, over 40% are in deep, long term poverty which means they are earning less than 50% below the poverty line. [2]
In October 2021, the Chancellor removed £20 a week from low-income families across the country, the largest cut to welfare since the Second World War. It was a national decision, but the impacts will be felt most acutely in London.
The Government has also suspended the pensions 'triple lock'. If London’s pensioners are on a full state pension they will lose an average of £487 in real terms this year. [3]
In February 2022, the Assembly passed a motion on the cost of living crisis calling for action which would bring Londoners out of poverty immediately.
On 1 April 2022, Ofgem increased the energy price cap by 54% which will result in the average standard tariff energy bill increasing by £693 per year. [4]
Yet despite all of this, in his Spring Statement, the Chancellor rejected calls for benefits to be brought in line with the current rate of inflation to better reflect the true cost of living. We do not agree with this.
In April, the Mayor announced a Cost of Living Hub, an online resource offering practical and financial advice to struggling Londoners, which we welcome.
This Assembly therefore calls on the Chair of the Assembly and the Mayor of London to write separately to the Prime Minister and Secretary of State for Work and Pensions to declare a ‘Cost of Living Emergency’ and ask the Government to:
- Immediately reduce the standard rate of VAT from 20% to 17.5% for one year;
- Immediately reintroduce the ‘triple lock’ on pensions to support London’s pensioners;
- Immediately reverse the £20 a week cut in Universal Credit; and
- Increase all benefits in line with the current rate of inflation.
We also call on the Mayor to report back monthly to this Assembly on how Londoners are using his Cost of Living Hub, giving us valuable and real-time insight into which particular issues Londoners are facing and requesting support with.
Notes to editors
- https://cpag.org.uk/child-poverty-london-facts
- https://li.com/wp-content/uploads/2022/05/Legatum-London-Poverty-Report-Q2-1.pdf
- https://www.tuc.org.uk/news/government-must-reverse-decision-suspend-pensions-triple-lock-amid-cost-living-crisis-tuc
- https://www.ofgem.gov.uk/publications/price-cap-increase-ps693-april#:~:text=The%20energy%20price%20cap%20will,%C2%A31%2C309%20to%20%C2%A32%2C017
- Watch the full webcast.
- The motion was agreed by 15 votes for 7 votes against.
- Hina Bokhari AM, who proposed the motion is available for interview.
- As well as investigating issues that matter to Londoners, the London Assembly acts as a check and a balance on the Mayor.
For media enquiries, please contact Lisa Lam on 020 7983 4067. For out of hours media enquiries, call 020 7983 4000 and ask for the London Assembly duty press officer.