This is The Scale of London's Cost of Living Crisis: The Government Must Act

No one should worry about how they’ll pay their next bill. No one should struggle to put food on the table. But we know this is the reality for so many more Londoners since the cost of living crisis began.

New analysis from City Hall shows that nearly half of Londoners are struggling to make ends meet. Those who are struggling financially are three times as likely to say they have gone without food and essentials than the average Londoner.

The new polling shows that: 

• 83% say their cost of living has increased over the last six months 
• Just 14% are saying they are ‘financially comfortable’, a drop of 10 points since January
• 28% are ‘just about managing’ 
• 15% are financially struggling
• 12% say they have regularly or occasionally been unable to buy food or essential items or relied on outside support in the last six months

It’s important that Londoners take all the help that’s on offer, but sadly tens of thousands of the least well-off in our city won’t benefit from the limited measures being provided by the Government so far. Their support simply does not go far enough.

The people most affected by the cost of living crisis and who are being left behind by our Government are:  

Low-income families 

Low-income families in our city are some of the hardest hit by the cost-of-living crisis as food and energy bills soar. But this group received no additional support in the Chancellor’s £15 billion package in recognition of the additional costs they face compared to other households. 

The two-child benefit cap means larger families (those with three or more children) are receiving proportionately less support from the Government per child. There are 210,000 children in London in families with three or more children and they will be particularly at risk as the majority will already be having their benefit income reduced by the two-child limit or the benefit cap.   

Londoners missing out on benefits

Despite the roll out of Universal Credit, there are still just under 220,000 households claiming Housing Benefit only in London. 

Housing Benefit is not one of the qualifying benefits that means people receive the £650 cost-of-living grant, therefore, despite not being able to meet their housing costs without support. This group will miss out on the extra help being given to Londoners on different means-tested benefits. 

Our capital’s three million private renters 

Many of London’s three million private renters will be facing increased bills with the average London monthly rent jumping 10.9% last year to £2,142 sending them above pre-pandemic levels for the first time by the end of 2021. 

At the same time the government has failed to ensure that support for housing costs through the benefits system has kept up with the increase to rents. This is exacerbated for renters who have the cost of their utility and council tax bills included in their rent, with their landlord acting as the account holder. 

This group may not benefit from the £400 energy bill grant (and the £150 Council Tax Rebate if eligible) as these will be paid directly to the landlord and not the occupant. It will be entirely at the discretion of the landlord whether they pass the grants on or reduce rent payments to account for the support received.

Migrant Londoners 

Hundreds of thousands of migrant Londoners with limited or no access to public funds are ineligible for the benefits that qualify households for the additional support announced. These include many people being hit the hardest by the cost-of-living crisis, including undocumented Londoners and those excluded from support by the Government’s ‘no recourse to public funds’ visa condition.

Taken together, these groups account for hundreds of thousands of Londoners who have been left behind by our country’s leadership. 

I’m calling on the Government to:

• Immediately lift the benefit cap and remove the two-child limit 
• Suspend no recourse to public funds conditions
• Extend eligibility to Free School Meals and Healthy Start Vouchers to those on Universal Credit
• Give the Warmer Homes Discount to everyone on Universal Credit, regardless of earnings
• Increase support for housing costs through the benefit system to ensure they cover rents 
• Give me the power to freeze rents in the capital for two years. This would save struggling Londoners almost £3,000 on average.

Hunger, poverty, and serious financial hardship can be avoided if the Government takes action makes the right decisions and acts. I will keep pushing them to do so.

And remember: help is available. 

Our Cost of Living hub has information and advice to help Londoners manage their household finances and debt. Please do share it with anyone you know who is struggling and would benefit from the support.