400,000 families to receive £324 cost of living support – but many fear it’s not enough

About 400,000 families who claim benefits in South London will receive the second installment of the Government’s cost of living support this month.

But many fear the £324 payment will not be enough to counter the increase in inflation and energy costs this winter.

As of yesterday, claimants who applied for the means-tested benefits will automatically start getting paid, forming part of the Government’s £1,200 payment to help struggling families.

Kate Bull, chief executive of Healthy Living Platform, which runs five food pantries across Lambeth, said it was seeing an increase of people in employment sliding into debt or using all their savings.

“This small payment can help people pay off their debts, but if an emergency happens they will be right back where they started.   

“For people who have consistently managed on low incomes, the rise in food costs means they can’t manage emergencies. There will be people not on full benefits, working, and have nothing left.

“It’s causing stress and worry. People’s pride in being able to cope is being eroded. There’s also a group of people who cannot use food banks because they are in employment.”

The £324 payment from the Department for Work and Pensions is made directly into eligible recipients’ bank accounts, with no need for people to apply or do anything to receive it.

Food redistribution organisation The Felix Project surveyed 1,513 people in London on an annual income of under £20,000, with YouGov, and about 40 per cent had skipped meals or not bought food for themselves to feed their children.

The survey found one in 10 respondents surveyed have just £2.85 a day to spend on breakfast, lunch and dinner.

Charlotte Hill, chief executive of The Felix Project, said: “We know, from listening to the community groups we support across South London and beyond, that too many low-income families are struggling with the cost-of-living crisis. 

“Inflation has caused huge price rises, and for many the only way they can afford all their other bills is to cut back on food shopping. 

“While we welcome this support from the Government, sadly it is a short-term fix for the long-term issue of poverty, and once the money is gone people will once again struggle to heat their homes and feed their children.”

Work and Pensions Secretary Mel Stride said: “We understand that people are struggling and that is why we’ve consistently acted to ensure millions of low-income families are supported.

“We will continue to act with compassion as we navigate challenging global economic circumstances.

“As part of a wider £37bn package of support, this latest £324 payment will help the most vulnerable people in our society who are worrying about their finances through the winter months.”

Pictured top: The Healthy Living Platform team at a Lambeth food pantry (Picture: Healthy Living Platform)