Liz Truss has prevented a further rise in utility bills with the “energy price guarantee” – a radical measure that could cost taxpayers more than £100 billion – but many poorer households are already struggling to make ends meet. A poll of more than 2,000 workers earning less than the real living wage of £9.90 an hour, or £11.05 in London, found that 78% said this was the worst economic time they had ever faced. More than half had used a food bank in the past year, while 42% reported regularly skipping meals for financial reasons. More than a fifth of these workers, 21%, said they had no money left over after paying for essentials such as rent and food. Kathryn Chapman, director of the Living Wage Foundation, said: “Everyone is feeling the pressure from soaring inflation, but our poll shows that low-wage workers are being hit harder than most. These shocking findings bring to life what it’s like to be paid less than a real living wage in a cost-of-living crisis.” He added: “It is more important than ever that employers can step up and provide a living wage.” About 4.8 million people in the workforce are paid less than the real living wage. The rates are calculated annually by the Resolution Foundation thinktank, based on the minimum income required to cover basic living costs. More than two-thirds of workers surveyed said their financial situation negatively affected their stress levels and overall quality of life – with women particularly badly affected. The Living Wage Foundation accredits employers who promise to pay their workers at least the living wage. The new rate for 2022-2023 is expected to be announced next week and is expected to see a significant increase given high inflation across the economy. The separate ‘national living wage’ – a legal minimum set by ministers – is currently £9.50, although it only applies to over-23s. During the early stages of the Conservative leadership campaign, Truss had expressed skepticism about the need for “brochures”, saying they would help consumers “in a conservative way to reduce the tax burden”. But economists had pointed out that the tax cuts would not benefit the lowest-paid, many of whom already pay little or no income tax. Archie Bland and Nimo Omer take you to the top stories and what they mean, free every weekday morning Privacy Notice: Newsletters may contain information about charities, online advertising and content sponsored by external parties. For more information, see our Privacy Policy. We use Google reCaptcha to protect our website and Google’s Privacy Policy and Terms of Service apply. As the leadership race drew to a close, it became increasingly clear that the new government would have to take more drastic measures to shield households. Without government intervention, energy regulator Ofgem had announced, a typical bill would be allowed to rise to £3,549 a year from October 1 – with another jump expected in the New Year. Shortly before it became clear the Queen was seriously ill last week, the Prime Minister announced the government would cap the unit price of gas and electricity to prevent a typical bill exceeding £2,500, with the cost covered by taxpayers. He told MPs: “I know businesses and families are very worried about how they will get through this winter. That’s why I felt it was important to act urgently to provide immediate help and support.” Anti-poverty campaigners welcomed the policy but questioned whether it could have better targeted low-income households, which were already struggling to make ends meet. The latest inflation figures, released earlier this week, showed prices rising at an annual rate of 9.9%. The government’s energy measures are expected to shave up to 5 percentage points from inflation, which the Bank of England had previously expected to peak above 13%.
