Target income support to help vulnerable with cost-of-living crisis, IMF says

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PM Andy Burnham has pledged to prioritise cost-of-living support for households ahead of this month’s Budget.

“Assistance, when warranted, should be temporary and delivered primarily through income-support measures directed at the most vulnerable households, ideally using existing social protection systems that can be scaled up rapidly,” the IMF said.

In “exceptional circumstances,” such as where there are significant concerns about food security or risks of social unrest, support may need to extend beyond the poorest households, it said.

Bakers’ union general secretary Sarah Woolley said the findings reinforce what the Right to Food Commission heard “throughout our work: when the cost of essentials rises, it is those with the least who are hit first and hardest.

“Temporary support matters in a crisis, but our report makes clear we need lasting change that guarantees everyone the income, security and access they need to afford nutritious food as a basic right, not just emergency help when things go wrong.”

Unison assistant general secretary Jon Richards said: “Rising rents, poor‑quality housing, and stagnant wages are pushing many public service workers into financial hardship.

“Large numbers spend unsustainable proportions of their income on housing, struggling to cover basic essentials and in some cases racking up debt or relying on foodbanks.

“These conditions are also undermining recruitment and retention across public services. The government must ensure workers get pay rises in line with inflation.”

A spokesman for Momentum said: “We need targeted help for those under the most pressure, alongside further action to bring down the cost of living. That means decent wages, more council housing and taking essential services out of the hands of profiteers.

“Households need more than temporary sticking plasters. They need an economy that makes life genuinely affordable.”

Mr Burnham has introduced measures such as cutting VAT on energy bills this winter, capping bus fares at £2 and lowering business rates for pubs, social clubs and live music venues.

The IMF is due to publish its full world economic outlook report next week.

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