- The Cost of Living Hub will help Londoners access information, financial support and advice to help manage household finances
- The new online resource is announced as the energy price cap is raised, meaning many across the capital face a 54 per cent rise in their energy bills
- The effects of rising energy bills coupled with increases in National Insurance contributions and Council Tax will put more pressure on Londoners, with polling earlier this year showing that 34 per cent had struggled to pay their household bills in the previous six months
The Mayor of London has announced a new online Cost of Living Hub to help Londoners experiencing financial hardship as a result of spiralling inflation, increases in National Insurance and the raising of the energy price cap which comes into effect today.
The Cost of Living Hub will help Londoners access a wide range of information and advice including how to claim benefits that they are entitled to, help dealing with debt, financial management and mental health support.
The new online Hub includes targeted information for groups of Londoners who are more likely to experience poverty and financial hardship. For example, the Hub signposts disabled Londoners to disability benefits, older Londoners to Pension Credit, which is not taken up by nearly 100,000 eligible older Londoners, and low-income families to childcare entitlements.
With inflation set to hit at least 8 per cent and energy costs rising by 54 per cent this April, more Londoners face an impossible choice between heating their homes and paying for other basic essentials like food.
Some Londoners are already experiencing the impact of being moved off fixed tariffs and onto variable rates as a result of energy supplier failure. Adding a further overnight average increase of £693 will be incredibly difficult for many in the capital to deal with.
Polling earlier this year showed that 34 per cent of Londoners have struggled to pay their household bills in the previous six months. The Survey of Londoners also showed that fuel poverty disproportionally affects Black Londoners, single parents, social renters and disabled Londoners.
The knock-on effects of increased energy bills coupled with benefits not rising in line with inflation will risk more Londoners being plunged into poverty. The cost of living in London was already a challenge before the pandemic with prices seven per cent higher than the UK average, housing costs taking up a higher proportion of income and average weekly pay 5.9 per cent lower than in 2010 when accounting for inflation. This was in stark contrast to a 0.9 per cent fall of 0.9 across the UK.
In February, City Hall provided £200,000 to extend Debt Free London’s helpline for Londoners struggling with debt to become a 24-hour service until May. The free confidential and impartial advice helps Londoners with a range of problem debts, including rent arrears, council tax arrears, utility bills, credit card debt, and loan repayments.