Government is failing to demonstrate determination to help those in greatest need - Cedric Boston

The challenges facing Liz Truss and her newly-appointed Ministers are immense, but there is already growing concern – in the housing association sector, as elsewhere - that their priorities are misguided.

We have huge fires in several areas of the nation’s social support infrastructure that have developed over decades due to constantly changing policies and short-term political thinking. In housing, the rent formula combined with housing association 30-year business plans was designed to avert a social housing crisis. It gave associations some certainty about their income stream so they can plan to meet all obligations and challenges. The 2016-2020 rent reduction regime undermined this strategy. Now the decision to cap social rent underlines this Government’s continuing addiction to “chop and change” that has crippled vital support services in this country like health, welfare and social care.

The cost of living crisis is understandably dominating the national conversation with individuals, families and organisations such as Unity having to make tough decisions on how to steer a way through a difficult winter.

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The Government is right to support domestic and non-domestic customers with their energy bills although, in truth, they had no choice. But despite this help, average household bills have doubled in just 12 months. This will have an enormous impact on those on the lowest incomes including a considerable proportion of housing association tenants. The past few months have also seen the UK inflation rate rise to a 40-year-high, decimating limited weekly budgets. Parents and those living on their own have been skipping meals and going without essential provisions.

Liz Truss after it was announced she is the new Conservative party leader. PIC: Stefan Rousseau/PA WireLiz Truss after it was announced she is the new Conservative party leader. PIC: Stefan Rousseau/PA Wire
Liz Truss after it was announced she is the new Conservative party leader. PIC: Stefan Rousseau/PA Wire

In the midst of these developments, the Government has placed tax cuts for business and those much higher up the income ladder at the top of its to-do list.

I support and understand the quest for business growth. However, after just a few weeks, I fear the Truss Government is failing to demonstrate a similar determination to help those in greatest need.

Inflation is not only outstripping wages, but also having an equally damaging impact on benefits which many – including many working people – depend on.

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Given the current levels of economic uncertainty, there can be no excuse for annual benefits for individuals and families not to go up in line with inflation.

The benefit cap, which penalises tenants with relatively high rents and service charges through no fault of their own, must also rise to enable households to keep more of the benefit income they need to meet inflationary cost increases on the basics like food, clothing and fuel.

And the most vulnerable people on housing benefit, who Ministers say they particularly want to help, should be allowed to benefit from the cap on social rents, instead of all the benefit going to working tenants and the treasury.

Prime Minister Truss triumphed in the Conservative leadership election on the back of several standout policy positions including her view that “handouts” were not the way to help people most adversely affected by the cost of living crisis. I agree a handout is not the basis of a long-term solution. But if one is starving, a food handout is exactly what is needed.

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Moreover, her use of the term “handouts” suggests a lack of understanding of those on miniscule household incomes – and how remote such comments make these individuals and families feel from the political decision makers in London.

Cedric Boston is the chief executive of Unity Homes and Enterprise.