Millions of families are without a financial safety net and facing a “miserable January” as the UK cost of living crisis gathers pace, according to Labour analysis.
More than six million adults in working households had no savings at all to fall back on even before the pandemic, the research showed, while over half of working families had less than £3,000 to act as a financial buffer.
People are at risk of being pushed off a cash cliff-edge between the universal credit cut, rising council tax, eye-watering energy bills and the upcoming national insurance increase, Labour said.
“This is a crisis made in Downing Street,” said Jonathan Ashworth, shadow work and pensions secretary.
“Eleven years of the Tories has seen family finances hammered and now it’s shaping up to be a miserable January with heating bills rocketing, prices going up and punishing tax rises on the way.
“The simple truth is people are skint with little if any savings to fall back on,” Ashworth added. “Ordinary working families shouldn’t be forced to pay the price for Boris Johnson’s economic failure.”