William Eichler 07 April 2022

Cost of living crisis risks leaving levelling up ‘dead on arrival’

Cost of living crisis risks leaving levelling up ‘dead on arrival’ image
Image: Denys Kurbatov/Shutterstock.com.

The Government’s levelling up agenda could be undermined by a deepening North-South divide exacerbated by the cost of living crisis, a think tank has warned.

Research by the Centre for Progressive Policy (CPP) has revealed that more than half (52%) of the areas most vulnerable to the crisis contain ‘Red Wall’ seats. These include constituencies in places such as Burnley, Sandwell and Hyndburn.

The CPP’s cost of living vulnerability index found that the places to get hit hardest by the cost of living crisis are urban areas of the North, the Midlands and London, and coastal towns, including Hastings, Thanet and Dover.

The index also revealed that less than a quarter of the areas that will receive the most benefit from the Government’s council tax rebate are among those classified by the index as highly vulnerable to cost of living pressures.

CPP is recommending that the Government deliver an uplift in Universal Credit payments to cover the April rise in the energy price cap. This would cost £2.4bn, which the CPP estimates would be £600m cheaper than the rebate policy.

‘Voters on low pay, experiencing food and fuel poverty or pushed out of work altogether, are on the margins of extreme vulnerability – but they are also in many of our most marginal seats. That adds political saliency to the urgent moral case for addressing the cost of living crisis,’ said Ben Franklin, director at CPP.

‘Levelling up slogans will be dead on arrival at the next election unless the Government reconsiders its policy options. Last month’s Spring Statement saw poorly targeted tinkering at the edges of the tax system, whereas our analysis suggests the Chancellor may be forced to reconsider a UC uplift to really help those hit hardest in places like Hartlepool and Hastings.’

SIGN UP
For your free daily news bulletin
Highways jobs

Key Worker - Young Carers

Essex County Council
Up to £28621.00 per annum
Key Worker - Young CarersPermanent, Full Time£28,621 per annumLocation
Recuriter: Essex County Council

Head of Service - Highways and Transportation

North East Lincolnshire Council
£77,899
We are seeking an exceptional leader to take on the role of Head of Service – Highways & Transportation North East Lincolnshire
Recuriter: North East Lincolnshire Council

Director of Education

Birmingham City Council
£135,398 to £175,519 (3 days per week on site)
Leading Collaboration. Strengthening Trust. Improving Outcomes Birmingham, West Midlands
Recuriter: Birmingham City Council

Executive Director of Prosperity and Place

East Riding of Yorkshire Council
£148,775 - £159,480
We are seeking an exceptional Executive Director of Prosperity and Place East Riding of Yorkshire
Recuriter: East Riding of Yorkshire Council

Social Worker

Durham County Council
Grade 9 £35,412 - £39,152(Pre-Progression) / Grade 11 £40,777 - £45,091(Post-Progression)
This is an exciting opportunity to join the Next Steps Team in Durham, a developing and ambitious service that prepares young people in care for indep Durham
Recuriter: Durham County Council
Linkedin Banner