Leading charity warns soaring cost of energy could worsen child poverty

The Joseph Rowntree Foundation says the number of children living in "deep poverty" has grown to 1.8 million

Author: Liam ArrowsmithPublished 18th Jan 2022
Last updated 6th Apr 2022

A leading charity has warned the poorest adults could be forced to spend more than half their income after housing on rising energy bills.

The Joseph Rowntree Foundation (JRF), which is based in York, says it could "devastate" the families struggling most, with bills expected to go up in April.

In its annual UK Poverty report, the JRF said trends show a "worrying increase" in the number of children living in the deepest poverty.

The Government said it would continue to "look closely" at what further measures may be needed to help with high energy costs.

What do the figures say?

Analysis by the JRF says low-income families could spend an average of 18% of their income after housing costs on energy bills after April.

This rises to 54% for single adult households, and around 25% for single parents and couples without children.

In comparison, middle-income households are expected to spend on average 6% of their incomes on energy bills, the analysis shows.

The analysis is based on the assumption that the energy price cap will rise by just under 50% from April.

Some 31% of children were living in poverty in 2019-20, rising to nearly half of children in single-parent families.

Big increases in child poverty

Around 1.8 million children were growing up in very deep poverty- in households with 40% or less than the average income.

That's an increase of half a million children in the past decade.

The JRF said there seems "little prospect" of reversing the recent rising child poverty trends, and also rising pensioner poverty.

Overall, 22% of people in the UK were living in poverty in 2019-20 - 14.5 million people.

The JRF said poorer households will have less of a buffer against rising costs or unexpected expenses as they are less likely to have savings.

It is calling for the Government to help the poorest households with targeted emergency payments, and to strengthen the "woefully inadequate" social security system which is causing "avoidable hardship".

Katie Schmuecker, JRF deputy director of policy and partnerships, said: "No childhood should be defined by a daily struggle to afford the basics. But the reality is that many children growing up today won't have known anything else.

"The fact that more children are in poverty and sinking deeper into poverty should shame us all.

"Rising energy prices will affect us all, but our analysis shows they have the potential to devastate the budgets of families on the lowest incomes.

"The Government cannot stand by and allow the rising cost of living to knock people off their feet."

A Government spokesman said: "We recognise the pressures people are facing on their household bills, which is why we have taken decisive steps to support them.

"The energy price cap has been protecting around 15 million households from high global gas prices. We are also supporting vulnerable and low-income households with the cost of fuel bills through schemes such as the Warm Home Discount and our £500 million Household Support Fund.

"Working families on Universal Credit are already seeing more money in their pockets, with an average of £1,000 more a year, and we're increasing the living wage again in April.

"We will continue to look closely at the pressures facing people and what further measures might be needed on abating high energy costs."

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