Labour has renewed its call on the government to cut VAT on energy bills as an analysis by the party claims disabled people “trapped in hardship” and poverty has increased by over a million in the last decade.
It comes as Boris Johnson’s government faces escalating pressure to provide support to households ahead of an imminent hike in energy bills and the increase in National Insurance contributions from April.
According to a Labour analysis of figures from the Department for Work and Pensions (DWP) since 2010 — when the Conservatives entered office — the number of disabled people living in poverty has increased by 44 per cent, to 3.8 million.
The analysis highlighted that over 2.6 million disabled people were living in relative poverty in 2010-11, but by 2019-20 the figure had increased by over 1.1 million.
The party said disabled people are “now being disproportionately” impacted by the cost-of-living crisis, as the government scrambles to find a solution.
According to The Times, Mr Johnson is set to meet with the chancellor, Rishi Sunak, this week to discuss options, including the possibility of millions been given a tax rebate to limit the impact of a hike in energy bills.
Anneliese Dodds, the shadow women and equalities minister, however, said: “The Conservatives’ cost of living crisis has seen poverty explode, with a million more disabled people now trapped in hardship since they took office.”
She added: “Instead of taking action to help them, the Tories slashed universal credit, cut £70m in disability benefits, and voted against Labour’s measures to reduce energy bills”.
Earlier this month, Labour lost a vote in the Commons seeking to cut VAT on energy bills — a measure partly funded by introducing a temporary “windfall tax” on the profits of North Sea oil and gas companies.
At the time, Rachel Reeves, the shadow chancellor, said the plans would “save households £200 off their bills, with up to £600 in total for those who need it most”.
Treasury minister Simon Clarke said then: “No-one in this Government is under any illusion about the challenges families are facing with their household finances and we will of course continue to look closely at all the options that exist.
“The government recognises the pressure that people are facing on their household finances, including on their energy bills, and we have taken steps already to ease those pressures where and when we can and we will of course continue to look at other things that we can do.”
A DWP spokesperson said:“We recognise living with a long-term illness or disability can impact on living costs. That’s why we’ve made extra financial support available to those with disabilities, or those who care for them, through Personal Independence Payment (PIP), Employment Support Allowance (ESA) and Carer’s Allowance.
“We are also taking more than £4.2bn worth of action to help people with the cost of living, and providing extra support to the most vulnerable with schemes including the Warm Home Discount, Winter Fuel Payments and the £500m Household Support Fund.”
“We are also taking steps to help more than one million more disabled people into work by 2027 as a long-term route out of poverty.”
