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The cost of living crisis in the UK has become a persistent reality for many low-income families, who are struggling to make ends meet. The situation has worsened due to the ripple effects of the war in Ukraine, with companies expected to raise prices rapidly in the coming months.The author, Ella Michalski, is part of Changing Realities, a collaboration of parents and low-income families from across the UK. She shares her personal experience of struggling to get by, with her family relying heavily on their car due to her daughters' complex needs. The financial circumstances of her family have not significantly improved in the past five years, despite her partner working.The article highlights the need for more support from the government, particularly for families with dependent children. The recent abolition of the two-child benefit cap and the rise in the minimum wage are seen as positive steps, but more needs to be done to address the root causes of poverty. The author also calls for changes to universal credit, including ending the punishing five-week wait for a first payment.The government's crisis and resilience fund (CRF) is seen as a step in the right direction, but its accessibility and effectiveness are concerns. The author argues that the government needs to target cost of living support at those who need it most, with a recognition that families with dependent children need more support.

The UK government is considering plans to provide financial support to households hardest hit by the looming energy crisis, with a focus on targeting those who need it most. Energy bills are forecast to hit nearly £2,000 a year from July, prompting concerns about the impact on low-income households.Under one plan, extra cash could be injected into the crisis and resilience fund (CRF), a £1bn a year council-run scheme in England that provides preventative support to communities and assists people facing financial crises. The fund could be topped up to help cushion households identified by councils as facing particular hardship from higher energy bills.Chancellor Rachel Reeves has ruled out universal support and is under pressure from financial markets to limit the extent of the support to keep within budget spending limits. However, she has emphasized the need for targeted support, saying: "The progressive, universal approach that we are taking is the right one … £150 off everyone’s energy bills, but then targeted support for those who need it most."The government is also exploring other options, including expanding support to households that have high bills but do not currently qualify for benefits. This could involve allowing councils to dispense funds to households in need.Rising energy costs have been driven by the conflict in the Middle East, with Brent crude oil prices surging to over $116 a barrel. The global oil benchmark is on course for a record monthly rise of nearly 60%, exceeding gains made during the 1990 Gulf war.The UK's interest rate on 10-year debt has also hit its highest level since the 2008 financial crisis, just over 5%, although rates eased to 4.95% by Monday. Government borrowing costs around the world have climbed since the US and Israel attacked Iran, as financial markets calculate that governments will be urged to borrow more heavily to cope with the war's aftershocks.