46811 Tower Hamlets residents were claiming Universal Credit in August and two fifths of this number were in work, according to the latest Government figures. The latest data also shows that the furlough scheme was still supporting 8660 people in the borough a month before it was scrapped. Local London Assembly Member, Unmesh Desai AM, is calling on Ministers ahead of the Government’s upcoming Spending Review to strengthen the safety net and increase the minimum wage to support the lowest income households this winter.
Mr Desai is raising concerns that alongside the cut to the £20 weekly uplift in Universal Credit payments and the end to the furlough scheme, energy bills and food prices are increasing.
Recent figures from the Office of National Statistics (ONS) also revealed that last year, the least well-off households in the capital spent, on average 60%, of their income on privately renting.
At the start of the pandemic, the Government increased Local Housing Allowance to cover the bottom 30% of rents. However, Mr Desai has said that Ministers must boost this further to encompass up to 50% of local rent levels, to prevent more families from falling into arrears to private landlords.
A report published last week by child poverty charity, 4in10, in conjunction with the Greater London Authority (GLA), revealed that more than two thirds of Londoners are either more concerned or much more concerned about the impact of poverty in the capital since the pandemic started.
The Government have recently announced a £500 million Household Support Fund to help vulnerable families and individuals with the increasing costs of living. But the Joseph Rowntree Foundation have said that this fails to meet the scale of the support that is needed.
Local London Assembly Member, Unmesh Desai AM, said:
“I am really concerned that it is going to be a very difficult winter for many low-income and vulnerable households in Tower Hamlets, who could struggle to afford to put the heating on, or enough food on the table.
“Thousands in our community have been hit by the cut to Universal Credit and the end of the furlough scheme. On top of this, we are facing increasing energy bills and food prices.
“The Government simply must do more to stop people from falling below the poverty line. As a start, Ministers should use the upcoming Spending Review to raise the minimum wage, so it is line with the real London Living Wage of £10.85 per hour.
“The safety net also needs to be strengthened, with the Universal Credit uplift reinstated and Local Housing Allowance increased to cover average rents.
“Our economic recovery cannot be built upon so many in our community being levelled down”.
ENDS
Notes to editors
Notes
- According to the latest Government figures, 46811 Tower Hamlets residents were claiming Universal Credit in August and 41% of this number were in work;
- The latest Government data shows that as of 31st August 2021, 8660 people in Tower Hamlets were being supported by the furlough scheme;
- The Government’s Spending Review is scheduled to be announced on 27th October 2021;
- Recent figures from the Office of National Statistics (ONS) have revealed that last year, the least well-off households in the capital spent, on average 60%, of their income on privately renting. The data shows that London households on the 25th percentile for income, paying private rent across the 25th, 50th and 75th percentiles for the rent prices, were on average, paying 60% of their monthly income on monthly rent between April 2019 and March 2020;
- In April 2020, the Government raised Local Housing Allowance rates to cover the bottom 30% of rents. When introduced in 2008, Local Housing Allowance was originally set to cover up to the 50th percentile, or the average rents of an area;
- 4in10’s latest report, Flying Against Gravity, can be found here;
- The Government have recently announced a £500 million Household Support Fund to help vulnerable families and individuals with the increasing costs of living. But the Joseph Rowntree Foundation have said that this fails to meet the scale of the support that is needed;
- Unmesh Desai AM is the London Assembly Member for City and east
For more information, please contact Labour Group Research and Support Officer, Sam Nicholas, on 0207 983 4400. Number not for publication.