Burnham Unveils Decade-Long Strategy to Counter Cost of Living Crisis

UK Prime Minister Andy Burnham has launched a comprehensive 10-year strategy designed to address the nation’s escalating cost of living crisis, outlining a policy framework centred on the expansion of social and affordable housing, significant reforms to Universal Credit, and targeted investment in local economies. The announcement accompanies a nationwide tour by the Prime Minister, who is engaging directly with citizens to assess the depth of financial distress affecting households across the country.

The urgency of the government’s intervention is underscored by data from the Joseph Rowntree Foundation, which estimates that 7.4 million low-income families were unable to afford at least one essential item in the last six months. Sam Tims, the charity’s lead analyst, attributed the record-high hardship to a combination of structural factors, including over a decade of austerity, weak wage growth, stagnant productivity, and the economic aftermath of Brexit. Tims noted that the basic rate of Universal Credit support is now lower than it was a decade ago, leaving the welfare safety net insufficient for many.

Personal accounts from those affected illustrate the severity of the situation. Donna O’Hara, a 54-year-old living with multiple myeloma, relies on food banks after losing household income when her son moved out. Despite receiving £1,800 a month in housing benefit, she faces eviction due to a shortfall against her £2,500 monthly rent for a property adapted for her health needs. Her son, who receives £340 a month in Universal Credit while awaiting surgery, relies on her support, highlighting the strain on the UK’s primary working-age welfare payment.

While the removal of the two-child benefit limit in April is estimated to have lifted half a million children out of poverty, experts argue that broader structural changes are required. Tims called for a protected minimum floor in Universal Credit and higher local housing allowance rates to make private rents affordable. Meanwhile, polling from Carnegie UK indicates that just over a quarter of households cannot afford an unexpected £850 expense, with one in 20 unable to feed everyone at home, showing little improvement over the past three years.

Policy experts from Carnegie UK and the Centre for Local Economies are advocating for a shift away from traditional growth-focused models. Evelyn Henderson-Child of CLES argued that GDP growth often fails to reach those in crisis, suggesting a need for “pre-distribution” to rewire the economic system from the outset. Adam Lang of Carnegie UK added that governments must track wellbeing alongside economic metrics to accurately reflect how people are faring, cautioning that a single set of measures is unlikely to resolve deep-seated financial instability.