The cost of living crisis is harming mental health, partly because of previous cuts to social security
Posted on 6th June 2022 by Dan Price
As the government announces measures to help the cost of living crisis, Kate Andersen and Aaron Reeves discuss the impact of financial insecurity on people’s mental health
The surge in prices over recent months has created a cost of living crisis that is exacerbating insecurity and harming people’s mental health. The Food Foundation warned recently that more than two million adults in the UK have gone without food for a day because of the rising cost of living. This is not inevitable. Yes, when prices rise faster than earnings, this puts additional financial and emotional strain on households. But in contexts where social security is more generous, this strain is minimised. Indeed, in some places, this strain has been entirely removed.1
The problem in the UK is that a decade of austerity means this particular cost of living crisis will be especially acute for families in receipt of social security. Reforms to Universal Credit over the past few years have entailed direct cuts to the generosity of social security payments and the failure to uprate the value of those payments in line with inflation. Social security benefits have therefore fallen considerably behind the rising cost of living. Out-of-work benefit rates are, adjusting for inflation, currently at their lowest for 30 years.2
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