Rising prices and higher taxes are squeezing budgets, according to researchers.
The Bank of England has warned inflation might reach 10% within months.
About half a million households would "face the choice between eating and heating" without these payments, it said, adding that the chancellor had a reported £20bn of "headroom" for government spending that could be used to cushion the shock to income.Faith Angwet told the BBC there was no support to help her pay rising food and energy bills
"There is no support, in my case I need a lot of support. It's got to the point that I turned to a payday loan, but they want you to borrow more than you need. We can't always go to the food bank, it's a vicious cycle," she said. Tony Danker, director general of the CBI, which represents big businesses, told the BBC's Today programme that companies were suffering too.
"If we wait... the economy will end up in more trouble," he added. "Get firms investing now because that will stop us facing dire consequences later on."Professor Stephen Millard, NIESR's deputy director for macroeconomics, said: "Although the war in Ukraine is fundamentally a human tragedy, it has resulted in another supply shock for the UK economy: pushing down growth and pushing up on inflation.
"This includes a tax cut of over £330 a year for the typical employee, lowering the Universal Credit taper rate to help people keep more of the money they earn, and providing millions of households with up to £350 each to help with rising energy bills," the spokesperson said.
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