Citizens Advice is urging the Government to offer more support to lower income households as the charity is 'really worried' about the cost of living crisis in the wake of inflation remaining at a near 30 year high.
Inflation measured through the Consumer Prices Index (CPI) reached 5.5% in January, the Office for National Statistics says. It rose from 5.4% in December and is at its highest level since the 7.1% recorded in March 1992.
The ongoing cost of living crisis is leading to "more and more" people running out of money before the end of the month, warns Dame Clare Moriarty, chief executive of Citizens Advice, who is calling for more Government support for those on lower incomes.
Read more: Petrol and diesel hit record high
Speaking on BBC Radio 4’s Today programme, Dame Clare said the organisation is “really worried” about the people coming for help, adding: “We think that for people on low incomes, the Government needs to provide more support.
“More and more people are finding that they can’t get to the end of the month and money runs out before the next cheque comes in.
“They can’t pay for gas and electric, so we’re hearing about people who are living and sleeping in a single room, who are using coats and hot water bottles to keep warm, and people having to turn to food banks to get by.
“That’s a problem that’s happening right now and, as we were hearing prices are still rising, this is a problem that’s going to get worse before it gets better,” she said.
Dame Clare added that the current Government support is not enough for those on the lowest incomes, saying: “There needs to be more support and it needs to come through the benefit system to the people who need it most.”
Food prices have jumped, as have the cost of clothes, footwear, and energy to power and heat homes. Further increases to energy bills are set to kick in from April.
Grant Fitzner, chief economist at the ONS, said: “Clothing and footwear pushed inflation up this month and although there were still the traditional price drops, it was the smallest January fall since 1990, with fewer sales than last year.
“The rising costs of some household goods and increases in rents also pushed up inflation.
“However, these were partially offset by lower prices at the pump, following record highs at the end of 2021.”
Pat McFadden, Labour’s shadow chief secretary to the Treasury, said: “With inflation expected to rise even further, and working people already feeling the crunch, the Tories should have taken action by now.
“Instead, the Chancellor’s buy now pay later scheme on energy bills loads up debt for future years, while his tax rises will only make matters worse.”
Chancellor Rishi Sunak said: “We understand the pressures people are facing with the cost of living.
“These are global challenges but we have listened to people’s concerns and recently stepped in to provide millions of households with up to £350 to help with rising energy bills.
“We’re also helping people on the lowest incomes keep more of what they earn by cutting the Universal Credit taper rate and freezing alcohol and fuel duties to keep costs down.
“In total, we’re providing support with the cost of living worth over £20 billion across this financial year and next.”
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