‘Small gains but big household costs not addressed’ says Citizens Advice
‘Small gains but big household costs not addressed’ says Citizens Advice
Responding to today’s Autumn Statement, Gillian Guy, Chief Executive of national charity Citizens Advice, said:
‘The Autumn Statement offers small gains but does not address big household costs. Despite welcome progress in our economy, many households are still struggling to get by and the next Government will still have tough decisions to take on public spending.
‘It's good news that the post-recession economy offers more jobs, but far too many people are facing instability in work and wages which have stubbornly failed to meet rising prices. Raising the personal tax allowance will mean more money for some, but not all, low income workers. But freezing the Universal Credit work allowance will make it harder to make work pay.
On household costs:
‘A freeze on fuel tax, exempting children from air passenger duty and increasing the personal tax threshold are small gains for households. But today is a missed opportunity to address some of the larger costs families face, particularly around childcare and energy bills and some people are still without access to basic banking services.
‘Increasing financial support for childcare is one of the Government's success stories, but too often the practicalities of childcare are a barrier to people being able to balance work and family. Forty per cent of Citizens Advice clients say accessing childcare is a barrier to work. Going forward the Government must ensure that problems with support, like unaffordable up-front payments and poor quality care, do not prevent parents making the most of positive reforms.
‘Energy bills are up by over a third since 2010 and many people live in homes which haemorrhage heat. Urgent investment is needed to make homes more energy efficient, particularly to help low income and fuel poor households get on top of their bills. Until consumers have a market which is competitive and transparent, and results in affordable deals, too many people will get a raw deal. This includes people with prepayment metres, who pay on average £80 a year more than direct debit customers and often receive a second class service.’
On housing:
‘Britain has failed to build enough homes for decades and it is good news that the Government has committed to build new homes directly, release land for house building and the development of a new garden city. But these new homes will take time. The chronic undersupply of housing has created problems in the private rented sector which need to be fixed urgently. In the three months over summer over 22,000 people came to Citizens Advice with a problem with their privately rented home, and this number is rising.
‘Other groups, including owner-occupiers, are also under pressure. Any rise in interest rates will not only have serious consequences for people with mortgages but also with private tenants whose landlords pass increased costs on.’
On welfare:
‘Freezing the work allowance for people on Universal Credit will mean many find it harder to make work pay. Giving every child of a parent receiving Universal Credit a Free School Meal would help ensure every hour of work pays.
‘Recent assessments of the Government's flagship reform have raised extensive concerns. A slow roll-out of the new benefit is sensible, but a wait of nearly a decade before Universal Credit is in place creates uncertainty for many households. There are also concerns that an ever-extending roll-out period is leading to unacceptably high implementation costs. Ministers must be watchful of the money being spent on this flagship reform, whilst ensuring that there is targeted help for people moved onto Universal Credit.’
On use of regulator fines:
‘It’s right the Government uses the money from fines to support people. The Government should give strong consideration to using a portion of any future fines to support advice services, which we know have a positive impact on people’s health.’
Notes to editors:
The Citizens Advice service comprises a network of local bureaux, all of which are independent charities, the Citizens Advice consumer service and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more see the Citizens Advice website .
The advice provided by the Citizens Advice service is free, independent, confidential, and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality.
To find your local bureau in England and Wales, visit citizensadvice.org.uk . You can also get advice online at adviceguide.org.uk
You can get consumer advice from the Citizens Advice consumer service on 03454 04 05 06 or 03454 04 05 05 for Welsh language speakers
Citizens Advice Bureaux in England and Wales advised 2.3 million clients on 5.4 million problems from October 2013 to September 2014. For full 2013/2014 service statistics see our quarterly publication Advice trends
Citizens Advice service staff are supported by more than 21,000 trained volunteers, working at over 3,000 service outlets across England and Wales.