Notice of Motion - National Cost of Living Crisis
This council recognises the unprecedented cost of living crisis facing many households across Newport, Wales and the UK. In the coming months more and more households will see increases of a magnitude never seen before as the energy price cap is removed or energy deals come to an end. This comes on top of a cost of living crisis created by the impacts of Brexit and the Covid Pandemic which have already seen an unprecedented squeeze on peoples incomes.
Inflation remains is at the highest level for over 30 years which is putting huge pressure on household budgets as earnings have not kept pace with prices, leaving family budgets squeezed and people worse off. The additional costs of day to day living are already impacting negatively on every household across Newport but even more so on families who are living close to the bread line many of whom still need to visit food banks and will now be faced with the terrible choice of heating their home or putting food on the table.
The charity National Energy Action (NEA) has warned that a record 6 million UK households will be in fuel poverty when the next increase in the energy price cap comes into force in April, and this view is compounded by the findings of the Resolution Foundation think tank, which warned that millions of UK families face a "year of squeeze" in 2022 thanks to rising energy bills, stagnant wages and tax rises. The Bank of England has also said it expects inflation to reach 6% by the spring.
The Resolution Foundation have said that an increase in National Insurance contributions from April, along with an expected rise in energy bills in the same month could amount to a £1,200 hit to household finances, with low-income families forced to bear the brunt of these rises as they spend a greater proportion of their income on electricity and gas.
As a Council, we will continue to do everything within our power to help mitigate energy costs by signposting residents to the number of financial support options available. We have administered over £1.5million to our eligible residents through the winter fuel support grant. We have also increased our support for food banks and related charities to £100,000.
However, the help families need to deal with the cost of living crisis can only be fixed by decisive action by the UK Government
This Council therefore calls upon the Leader of the Council to write to the Prime Minister and Chancellor of the Exchequer and call for the immediate implementation and action for the following:
· Suspension of the proposed increase in National Insurance contributions
· A reduction in VAT for Energy Bills to help families and householders
· An introduction of a new lower price cap on energy bills to protect households from excessive price rises
The Motion is to be proposed by Councillor Jason Hughes and seconded by the Leader.
Minutes:
“This council recognises the unprecedented cost of living crisis facing many households across Newport, Wales and the UK. In the coming months more and more households will see increases of a magnitude never seen before as the energy price cap is removed or energy deals come to an end. This comes on top of a cost of living crisis created by the impacts of Brexit and Public Document Pack the Covid Pandemic which have already seen an unprecedented squeeze on peoples incomes. Inflation remains is at the highest level for over 30 years which is putting huge pressure on household budgets as earnings have not kept pace with prices, leaving family budgets squeezed and people worse off. The additional costs of day to day living are already impacting negatively on every household across Newport but even more so on families who are living close to the bread line many of whom still need to visit food banks and will now be faced with the terrible choice of heating their home or putting food on the table. The charity National Energy Action (NEA) has warned that a record 6 million UK households will be in fuel poverty when the next increase in the energy price cap comes into force in April, and this view is compounded by the findings of the Resolution Foundation think tank, which warned that millions of UK families face a "year of squeeze" in 2022 thanks to rising energy bills, stagnant wages and tax rises. The Bank of England has also said it expects inflation to reach 6% by the spring. The Resolution Foundation have said that an increase in National Insurance contributions from April, along with an expected rise in energy bills in the same month could amount to a £1,200 hit to household finances, with low-income families forced to bear the brunt of these rises as they spend a greater proportion of their income on electricity and gas. As a Council, we will continue to do everything within our power to help mitigate energy costs by signposting residents to the number of financial support options available. We have administered over £1.5million to our eligible residents through the winter fuel support grant. We have also increased our support for food banks and related charities to £100,000. However, the help families need to deal with the cost of living crisis can only be fixed by decisive action by the UK Government This Council therefore calls upon the Leader of the Council to write to the Prime Minister and Chancellor of the Exchequer and call for the immediate implementation and action for the following:
§ Suspension of the proposed increase in National Insurance contributions
§ A reduction in VAT for Energy Bills to help families and householders
§ An introduction of a new lower price cap on energy bills to protect households from excessive price rises”
The Motion was seconded by the Leader, who also reserved the right to speak.
No amendments were proposed.
Comments on the Motion from Councillors:
§ Councillor Harvey fully supported the motion and compared the cost of living to the 1920s. It was appalling and horrific for everyone in dire straits; those working or out of work were equally affected.
§ Councillor M Evans advised that the Conservative party would not take part in this debate as it was being used for political purposes.
§ Councillor Davies considered that supporting the motion was the right thing to do and this was the highest rate of inflation and could rise further. The fuel increase was the highest on record and could rise further due to the position in Ukraine. Many homes were poorly insulated and people were turning their heating off. Wages were stagnating and the average worker would only be earning £13,000 by mid 2020s. As Cabinet Member for Education Councillor Davies was also concerned about the children in Newport who were being supported by schools because of the situation.
§ Councillor Wilcox felt that the cost-of-living crisis is about steep price increases in everyday and essential food items and making the situation worse for the 4.7 million adults and 2.5 million children already living in food insecurity.
The Welsh Labour Government in collaboration with local government was doing all it could to ameliorate the worst effects of the price rises for people in Newport. Councillor Wilcox therefore fully support the motion.
§ Councillor Truman supported the motion to try and help people living in hardship, cost of living increase meant people were suffering and should be supported by all.
§ Councillor Hourahine also supported the motion.
§ Councillor Cockeram also supported the motion.
§ The Leader made a point about the impact on the National Insurance increase and energy increase on businesses and service providers as well as the potential wages stagnation it could also stagnate the economy. 17,000 Newport households saw their universal credit cut by £1,000. WG was offering a £150 payment to ameliorate the situation, we would do everything to support Newport residents. Therefore, the Leader supported the motion.
§ Councillor Hughes added that this impacted Newport families in every ward and that people were falling into poverty in their hundreds of thousands. There was an increase in people using foodbanks therefore Councillor Hughes supported the motion.
Resolved:
The Cost of Living Crisis Motion was carried.