Learning Network Co-Chair, Paul Maynard MP on the cost of living crisis

The case for Financial Shield is never greater as the whole country faces the grim reality of a huge cost of living shock and the pressure this will exert on people’s financial, physical and mental health. 

The combination of record inflation and run-away energy prices is significantly reducing the value of wages. The most vulnerable will be hit hardest and longest but millions of ordinary hard working people will also be pushed and pulled like never before. This strain on people’s finances will force many to cut back on essential spending and basic items, leading to poorer diets and colder homes which will impact both physical and mental health significantly. 

Higher costs could push the number of "destitute" households — defined as those unable to afford basic necessities — up by a third to hit 1 million, according to analysis by The National Institute of Economic and Social Research. In April, the energy price cap will increase by 54% — its largest ever rise — burdening 22 million people with an annual bill of roughly £2,000. 

Even with the Chancellor’s recent announcements to add a further £500m for Household Support funding for local authorities to help vulnerable households as well as a reduction in the threshold at which people pay NI contributions, wages are playing catch up with inflation. 

There is a lot of focus on the impact of financial pressure on health and vice-versa, it is welcome that the Government is publishing a White Paper exploring ways to tackle the core drivers of disparities in health outcomes. Now is the time to come up with practical solutions which respond to a backdrop of unpredictability and anxiety in household finances.

The Financial Shield Learning Network must be agile. It is more important than ever to share best practice and tools to create a template for other cities and regions to adopt Financial Shield to greatest effect, and identifying funding whether from NHS social prescribing budgets for the provision of Link workers or from creditors – local authorities and housing associations who benefit from people getting ‘back on track’ and paying down their debts. Please join our Learning Network and get in touch with suggestions and questions.