Luton Foodbank warns £100 energy payment doesn't tackle long-term issues
The foodbank is warning that families in Luton will continue to struggle
Luton Foodbank has welcomed the Government’s £100 energy payment for millions of households, but says families need longer-term support as the cost of essentials continues to rise.
Salma Khan, chief executive of Luton Foodbank, said the one-off payment would help families in the short term, but warned many households in Luton would continue to struggle to afford food, heating and other essentials.
Chancellor John Healey announced in yesterday’s budget, a £100 energy payment for households in council tax bands A to D in England, with around 20 million households expected to benefit.
The Treasury says the budget gives families “breathing space today, and fresh hope for the future.”
To help fund the £2.6bn scheme, the government is temporarily increasing the Bank Corporation Tax Surcharge from 3% to 6% for 15 months.
But Ms Khan said families would continue to struggle as energy bills are expected to rise again in January.
“We definitely welcome that because it’s a £100 saving for families,” she said.
“But we’re also concerned about households in Luton, because they’re still going to be finding it hard to stay warm and fed this winter.”
'It doesn't go far enough'
Ms Khan said the foodbank regularly sees parents, carers and working people struggling to afford everyday essentials, despite doing everything they can to make ends meet.
She said the payment could be quickly spent on food shopping, adding: “When you go to the supermarket nowadays, £100 is just like your weekly shop. It’s just done.”
She also warned that some struggling households might not qualify for the payment, while others were facing difficulties because their wages or benefits were not keeping pace with rising living costs.
Ms Khan said the foodbank was seeing people struggling to afford food and basic hygiene products, with some families having to decide whether to heat their homes or feed their children.
“The cost of living is going up, and food prices are going up, but salaries and benefits are not going up,” she said.
“That’s what leads people to emergency food support like us.”
Government plan to tackle energy costs:
The Government says it is working on longer-term plans to reduce energy costs.
These include extending the cut to VAT on domestic electricity until July 2027, which the Government expects to reduce the annual energy price cap by around £50 in April.
It also plans to abolish gas standing charges and introduce measures to tackle household energy debt.