Think tank The National Institute of Economic and Social Research (NIESR) predicts the cost of living crisis will lead to an estimated 1.5 million households struggling to pay food and energy bills over the next year, as rising prices and higher taxes squeeze budgets.
It forecasts that about a quarter of a million households will slide into extreme poverty, taking the number to about a million. About half a million households would 'face the choice between eating and heating'. In its turn The Bank of England has warned inflation might reach 10% within months.
Christian organisations have reacted with alarm to this news, although many have been warning about the impending crisis for months. Speaking exclusively to Evangelicals Now, Director of the Jubilee Centre Tim Thorlby said 'The cost of living crisis is biting the UK particularly deeply at the moment because so many families were already struggling on low incomes. A rise in inflation is going to push millions of people to foodbanks because they were living right on the edge already, even those in work. It's time to bring an end to poverty - including working poverty - so that this never happens again. And the responsibility for this is shared between Government and employers.'
Energy bills are a particular concern as prices shot up after the Energy Cap was loosened this Spring; costs are set to rise again sharply this Autumn. Christians Against Poverty’s Energy Manager, Paul Walmsley, says 'CAP is already seeing a significant increase in demand for its free debt help in many parts of the UK and we are concerned many more people will need support as the cost of energy spirals out of control. The latest increase is another big hit for low income households who are already struggling to afford the basics they need to live with dignity.'
The charity has seen requests for emergency fuel vouchers double in the first two months of this year compared to the first two months of 2021, further highlighting the impact that the energy crisis is already having. In that same period it also delivered over £23,000 worth of crisis support, including emergency fuel vouchers, food shops and essential items.
Churches as well as individuals are facing the squeeze of higher prices and potentially lower incomes. Paul Houghton of Kingdom Bank said 'we are contacting all those church mortgage customers who we consider are most likely to struggle, to ask them both about the direct impact of energy price rises and the indirect impact of reduced giving. Some churches have given it careful thought and have contingency plans in place. Many do not appear to have done so as yet. It remains a concern that many churches (in particular the ones we are contacting) have no reserves policy, as required by the Charity Commission.'
