Keep 70,000 London children out of poverty

Fuel poverty could be one of the most significant challenges facing Londoners over the coming months.



Households will face an energy bill increase of 54% from April after the energy regulator Ofgem lifted the cap on default tariffs to £1,971.

Because of this, the London Assembly has called on the Mayor to write to the Prime Minister asking for the £20 Universal Credit uplift to be reinstated, the 5% VAT on bills to be cut for the next year and for an extension to the eligibility criteria for the Warm Homes Discount.



Reinstating the uplift and removing the benefit cap would keep 70,000 London children out of poverty.



Joanne McCartney AM, who proposed the motion, said:



“With 500,000 households already in fuel poverty, the Government’s decision to raise National Insurance and cancel the Universal Credit £20 uplift at a time of spiralling inflation beggars belief.



“It is vitally important that at a desperate time like this, the Government does everything within its power to support Londoners struggling with mounting fuel costs.



“Reinstating the £20 Universal Credit uplift, cutting the 5% VAT on bills for the next year and extending the eligibility criteria for the Warmer Homes Discount could make a massive difference to Londoners.



“No one should have to make the choice between heating and eating”.

The full text of the motion is:

This Assembly believes fuel poverty to be one of the most significant challenges facing Londoners over the coming months as Londoners are seeing their energy bills rise. This Assembly notes that the energy price cap is estimated to rise by £700 in April - over a 50% increase which will see around 11 million households across the UK, on default tariffs have their bills increase further, including thousands of households and businesses in London.

This Assembly recognises estimates from Citizens Advice which state an additional 600,000 customers currently on cheaper fixed rate tariffs will see their bills rise by a further £150 when their fixed rates end in the summer.

This Assembly also puts on record its concern that come April 2022, the proportion of unemployment benefit spent on energy bills is estimated to jump to a staggering 33%.

In October 2021, 17% of people on Universal Credit were living in London, an increase from 16.5% in October 2020, representing over one million Londoners. This Assembly notes with concern that research shows the removal of the uplift to Universal Credit and Working Tax credits put 130,000 additional Londoners, including working Londoners, at risk of poverty – hitting some of the most disadvantaged groups – even before the increase to the cost of living that Londoners are now facing.

This Assembly recognises that reinstating the uplift and removing the benefit cap would keep 70,000 London children out of poverty.

This Assembly notes that the Mayor implemented a Fuel Poverty Action Plan and has a range of programmes to tackle this issue. In November 2021, the Mayor reopened his Warmer Homes Programme, providing grants of up to £5,500 for low-income households requiring energy efficiency improvements, securing over £7 million in Government funding to enhance this programme. However, this Assembly notes that this issue requires all levels of Government to do everything they can to support Londoners suffering the hike in energy costs.

As such, this Assembly calls on the Chair of the Assembly, the Mayor of London and Deputy Mayor for Environment and Energy, to write separately to the Prime Minister and Secretary of State for Work and Pensions, to make the case for the £20 Universal Credit uplift to be reinstated, for the 5% VAT on bills to be cut for the next year and for the eligibility criteria for the Warm Homes Discount to be extended, thereby supporting Londoners with the increased cost of living.