Cost of Living Emergency

Hina Bokhari AM proposed, and Léonie Cooper AM seconded the following motion:

“This Assembly notes with deep concern that London faces the highest levels of poverty of any city or region in the UK, with more than one in three of London’s children (over 700,000) living in poverty.

29% of Londoners live in poverty, compared to 21% nationally. Of these, over 40% are in deep, long term poverty which means they are earning less than 50% below the poverty line.

In October 2021, the Chancellor removed £20 a week from low-income families across the country, the largest cut to welfare since the Second World War. It was a national decision, but the impacts will be felt most acutely in London.

The Government has also suspended the pensions 'triple lock'. If London’s pensioners are on a full state pension they will lose an average of £487 in real terms this year.

In February 2022, the Assembly passed a motion on the cost of living crisis calling for action which would bring Londoners out of poverty immediately.

On 1 April 2022, Ofgem increased the energy price cap by 54% which will result in the average standard tariff energy bill increasing by £693 per year.

Yet despite all of this, in his Spring Statement, the Chancellor rejected calls for benefits to be brought in line with the current rate of inflation to better reflect the true cost of living. We do not agree with this.

In April, the Mayor announced a Cost of Living Hub, an online resource offering practical and financial advice to struggling Londoners, which we welcome.

This Assembly therefore calls on the Chair of the Assembly and the Mayor of London to write separately to the Prime Minister and Secretary of State for Work and Pensions to declare a ‘Cost of Living Emergency’ and ask the Government to:

• Immediately reduce the standard rate of VAT from 20% to 17.5% for one year;
• Immediately reintroduce the ‘triple lock’ on pensions to support London’s pensioners;
• Immediately reverse the £20 a week cut in Universal Credit; and
• Increase all benefits in line with the current rate of inflation.

We also call on the Mayor to report back monthly to this Assembly on how Londoners are using his Cost of Living Hub, giving us valuable and real-time insight into which particular issues Londoners are facing and requesting support with.”

Following debate and upon being put to the vote, the motion in the name of Hina Bokhari AM was agreed, with 15 votes being cast in favour and 7 votes being cast against.