New research shows devastation of Labour’s austerity

Fighting Labour’s austerity budget in November last year (Photo: Guy Smallman)

More than a third of people expect to run short of cash before the end of January—and the majority of those expect to have used up their monthly income by Thursday.

The new research from money platform Intuit Credit Karma shows one in seven people are planning to take on new debt in January to cover the shortfall.

Lewis, who experiences a chronic life-limiting condition, spoke to Socialist Worker about how the increases in the cost of living have affected him.

“The way benefits have been fixed and the level of inflation means it is a real terms cut. It influences how you behave,” he explained.

Lewis described inflation as “the biggest problem without a doubt”. “The government not increasing entitlements by real inflation is a big issue and hits me the same as everyone else,” he said.

“I can’t drive and have to get a bus to all the specialist centres, which are an hour away, for treatment. One thing is that previously I would have been more open to using a taxi, but I’m less willing to do that now.

“Inflation hits me on essential goods,” Lewis said, speaking about the increases in food prices. “I get prescribed nutritional drinks as I have to have a high calories intake. I am frequently using those drinks instead of eating more food, which I was more likely to do in the past.

“And gas and electricity prices are on a good day stagnant. We have some of the highest energy costs in the world.”

And Labour’s threats to cut disability benefits only worsen the situation, being a constant source of “mental stress,” Lewis said.

“It has been extremely stressful, not just the policies themselves but the U-turns. You have no idea which way it is going to go and who is going to be affected. It is a Russian roulette situation.”

Prime minister Keir Starmer entered into the new year by promising to reduce the cost of living. But this Labour government remains committed to austerity 2.0 for the working class. It is determined to put cash in the pockets of generals and avoid taxing the super rich—and make ordinary people pay.