Some of the poorest people in Brighton and Hove have collectively lost income totalling more than £10 million since changes to universal credit in the autumn.
The annual cost of the loss of income for about 30,000 Brighton and Hove families who receive the benefit is estimated to total about £30 million, councillors were told.
They now face soaring gas and electricity bills, higher petrol and diesel prices and rising food bills, made worse by Russia’s invasion of Ukraine.
Green councillor Alex Phillips proposed a motion to Brighton and Hove City Council’s Health and Wellbeing Board, saying: “The bad news is that the situation appears to be worsening with the added anxiety of fluctuating oil and gas supplies resulting now from the travesty of war in Europe.”
It was, she said, “yet another reminder that our dependence on fossil fuels keeps plunging people into unpredictable uncertainty”.
At Hove Town Hall this afternoon (Tuesday 8 March), Councillor Phillips said: “This comes off the back of what has already been a disturbing backdrop.”
It followed the coronavirus pandemic of the past two years, she said, which had brought “incredible economic insecurity”.
She cited deaths, health fears, job losses and insecure employment, business closures, rising debt, school closures and the “huge impacts on mental health from the youngest of our citizens to the eldest”.
There was, she said, also “the disruption in the supply chain caused by Brexit’s impact on our HGV driver shortage which has affected the cost of essential food and goods”.
Councillor Phillips added: “The government decided to cut the £20 a week uplift from universal credit while, of course, let’s not forget, simultaneously ending furlough and raising national insurance contributions – and didn’t I hear something about hiking up student loan repayments too?
“Sadly, of course, the fact remains that even without all of this happening, the welfare system of this country barely provides enough for people to live on in the first place. At least the uplift made it just one push closer to manageable.
“And, of course, let’s not forget the axe to the ‘Green Homes Grant’ scheme that could have worked towards insulating some of the coldest homes, possibly mitigating some of the terrifying rises in fuel costs.”
She said: “In Brighton and Hove there are nearly 30,000 people claiming universal credit. That’s just over a whopping 10 per cent of our residents.
“The £20 a week uplift would therefore be worth nearly £31 million to claimants locally per annum. This makes no sense as 40 per cent on those on universal credit are working on painfully low wages.
“In reality, the damage this will cause will be felt the most by our children.”
More children would be plunged into poverty, she said, adding: “We can’t do what residents needed years ago – warmer homes, better support and an actual long-term plan for the future – without action from ministers.”
She called for a report to a future meeting of the Health and Wellbeing Board to look at what the council and its partners were doing to help and what more could be done.
She added: “The good news is that the council is mobilised, working hard across all teams and directorates to address the cost-of-living crisis, support vulnerable residents and promote the support available.
“Indeed, a leaflet has gone to every household detailing some of the support to date and we are planning more – we certainly haven’t waited to act by any means.”
Councillors noted the scrapping of the £20 universal credit uplift in early October while fuel bills had since soared.
They also noted “that the poor quality of this country’s housing stock makes it expensive to heat” and “the need for a scheme to replace the failed ‘Green Homes Grant’ and for tighter building regulations for new homes”.
They asked the council chief executive Geoff Raw to write to the government to ask for funding “to redress the universal credit cut and support council crisis funds” and “measures to end obstacles to retrofitting”.
The letter is expected to go to the Secretary of State for Levelling Up, Housing and Communities, Michael Gove, or the Minister for Levelling Up Communities, former Sussex University student Kemi Badenoch.
Some interesting comments from the Green councillor who scores a few own goals in her post.
She is quick to mention soaring gas and electricity bills, higher petrol and diesel prices and rising food bills. She tells us the bad news is that the situation appears to be worsening with the added anxiety of fluctuating oil and gas supplies resulting now from the travesty of war in Europe and keeps plunging people into unpredictable uncertainty.
She hasn’t mentioned the hikes to the council taxes, car parking and parking permit fees that her council are implementing that also impact not only those on credits, but each and everyone of us.
All this has followed the coronavirus pandemic of the past two years that has impacted financial insecurity for all of us and some of us still don’t know how many health fears, job losses and insecure employment will be in the coming months and years.
Councillor Phillips wrongly posts “the disruption in the supply chain caused by Brexit’s impact on our HGV driver shortage which has affected the cost of essential food and goods”.
How wrong that statement is, Brexit had absolutely nothing to do with driver shortage. Yes some HGV drivers returned home, the main cause of the shortage was the closedown of the country. No HGV training was undertaken, drivers retired or took other jobs. Now we’re feeling the impact of 2 years of inactivity, backlog of driver training and Driving tests.
No Councillor Phillips, not caused by Brexit. Careful research and keeping up to date with what’s going on elsewhere would have told you, there was a driver crisis and shortage on mainland Europe too.
Councillor Phillips tells us the government decided to cut the £20 a week uplift from universal credit, yet her own Green party decides to increase council taxes etc.
So ending furlough is a bad thing is it, lets get every body back to work, in whatever form that might be, the economy both local and nationally needs it.
Tax and raising national insurance contributions could have been expected, people really didn’t expect to be paid to sit at home at Government expense and not expect some form of claim back.
Something about hiking up student loan repayments too, well perhaps a bit harsh, but I’m sure they will find the extra from somewhere, after all, they seem to have plenty of funds to be out drunk every Friday and Saturday nights.
And talking of loans what about the i360 ?
Yes a lot of good points and plans but a lot of old rubbish too.
Councillors are best to concentrate on council matters – local issues that matter to people that the council can directly influence and improve in the short- to medium- term. Stick to your remit Alex…… uless you can find me the £16,000+ for the heat pump I need to replace my gas boiler and the £12,000+ for the solar electric. Put your feet on the ground.
So what are the council going to actually do about reducing council tax expenditure to help with the cost of living crisis?
Are they still going to continue invite every drug head in the country here and allow them to beg on the streets leaving Brighton council tax payers to pay for do the increased cost burden these people have on council services under the city of sanctuary scheme?
Its not lost money it was provided to help during a National emergency.I agree it should be given to low wage working families to make work pay but not to those who use the benefit system as a way of life.
Also people on sickness and Disability benefits that can’t work did not get this £20 extra per week so that is very unfair.
But those who are complaining who have never worked should note there is loads of jobs out there.