A RECENT report from the resolution foundation revealed what we already knew, current government policy will result in a large loss of disposable income for the average household, a yearly loss of £, 200 a year in fact.

The reasons for such a big hit to an average household’s income are clear, the upcoming rise in national insurance and huge increases in gas and electricity bills which are predicted. Combine this with the increase in inflation and wages falling in real term and we end up in the situation we are currently in.

The government has so far done nothing to address this upcoming crisis, how are some families going to feed their kids next year? How are families going to keep up on mortgage payments? How are they to live in any form of normality when they are having to spend more and more time thinking about their financial situation through no fault of their own?

Urgent action is needed to address this upcoming crisis, the government is predicted to receive around £3.1bn more from VAT receipts than the pre-budget forecasts predicted, this immediately provides the government with the money they need to remove or greatly reduce VAT on gas and electricity on a temporary basis. A delay to the upcoming rise in National Insurance to stop households facing all the rises at the same time would help and it would give the government more time to work on addressing the other issues such as gas and electricity bills.

Why haven’t any measures to properly address the cost of living crisis been announced? We are heading straight into catastrophe for millions, and we are yet to hear of any support, the government has already ignored the crisis for months, they now only have a few months until households lose a large amount of income.

The Government will be responsible for any cost of living crisis which comes. They have no interest in easing peoples fears, if they did, they wouldn’t choose inaction. It is about time this government got serious and governed in favour of the British people.

Matthew McEwan