Some working families will be more than £1,700 worse off by next April – losing £1 in every £20 of their income – a new Labour analysis says.
The party will hammer home the message that the country is heading for a cost-of-living crisis, because of a “perfect storm” of tax hikes, benefit cuts and soaring fuel bills.
The analysis calculates the hit to a single parent of two children, working full time and earning average wages, while claiming support for private rented housing.
Tax and benefit changes – including the £20-a-week cut to universal credit, the freezing of personal allowances and next year’s National Insurance increase – will swipe £1,440.61, Labour says.
On top of that, the average energy bill is rising by £139 a year and a second jump of at least £178 is expected when the price cap goes up next April.
“Working people in Britain are facing a perfect storm created by this government which will see the average family nearly £2,000 a year worse off,” said Jonathan Reynolds, the shadow work and pensions secretary.
Labour is still pressing the government to halt the universal credit cut, which will kick in from October, although ministers are exploring a partial climbdown.
“It is not too late for the government to change course, cancel their cut to universal credit and back struggling families this winter,” Mr Reynolds added.
Ministers have contradicted each other over whether what some have called a new winter of discontent looms in the next few months.
The business secretary, Kwasi Kwarteng, warned of “a difficult winter”, admitting some families would have to choose between eating and heating their homes.
But Boris Johnson dismissed the fears, when asked if “people are going to really struggle this winter”, replying: “No, because I think this is a short-term problem.”
The claim was rejected by the Resolution Foundation think-tank, which warned of “a cost of living crunch” – even if the immediate gas supply problems ease.
One charity told The Independent that juggling falling income with higher costs would be “an impossible task” for many, while a second said rising prices would be “devastating and in some cases lethal”.
