Category Archives: Cost of living crisis

Jump in UK wages fails to keep pace with cost of living

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Pressure for more support for households and businesses after consumer prices rise 6.2%

Business live updates: jobless rate drops and wage squeeze continues

Britain’s cost of living crisis moved into its fourth consecutive month in February despite a jump in wages and a fall in unemployment to just 3.8%, its lowest level since 1974.

The Office for National Statistics said average earnings growth of 5.4%, including bonuses, failed to keep pace with a 6.2% rise in the consumer prices index in February, while for those who missed out on a bonus the situation was even worse after average wages increased by only 4%.

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Civil unrest due to rising energy bills ‘isn’t far away’, says Martin Lewis

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Money saving expert says UK government must do more to ensure people can heat homes and have enough food

Britain’s self-titled money saving expert Martin Lewis has warned that civil unrest over rising energy bills “isn’t far away”, as he repeated his call for more government intervention to protect people.

Lewis said he was the most scared he has been for people’s finances since he founded his popular website in 2003. It has traditionally offered advice on which bank accounts or phone providers may be cost-effective, and has been a regular port of call for people looking to switch energy provider and save money.

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Sunak’s wife to pay UK tax after outcry

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Akshata Murty says she realises many felt her arrangements were not ‘compatible with my husband’s job as chancellor’

• Sunak defends wife’s tax status as Labour and No 10 deny leak

Rishi Sunak’s wife, Akshata Murty, bowed to pressure to pay UK taxes on Friday night, after Boris Johnson said he had been unaware she was a “non-dom” and fresh questions emerged over the couple’s tax affairs.

With Sunak’s position under increasing threat, Murty said she realised many people felt her tax arrangements were not “compatible with my husband’s job as chancellor”, adding that she appreciated the “British sense of fairness”. She will pay tax on all worldwide income in future and for the last tax year, but not on backdated income, which could have saved her an estimated £20m of UK tax on foreign earnings from her billionaire father’s Indian IT company.

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Union rejects pay rise of £1,500 for BT staff and plans strike ballot

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CWU bosses say increase is relative cut in salary but BT says it is its biggest award in two decades

BT has given 58,000 workers a £1,500 pay rise that it says is its biggest award in two decades, despite its largest union rejecting the deal and saying it intends to ballot members over strike action.

Last week BT had a £1,200 pay rise offer rejected by the Communication Workers Union (CWU), which represents about 40,000 of the company’s 100,000 employees, with union bosses describing it as “insulting” and a “relative pay cut” as soaring inflation fuels a cost of living crisis.

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Strikes in UK at highest in five years as pay is hit by inflation

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Country’s biggest trade unions are taking on scores of employers to challenge low wage and salary offers

Unionised workers are increasingly prepared to challenge inadequate pay offers and take strike action to ensure wages keep up with the sharply rising cost of living, amid signs that workplace militancy is growing in parts of the economy.

Some of the UK’s biggest unions are battling scores of firms at the same time, with the number of industrial disputes well above pre-pandemic levels. GMB members entered into dispute with 42 employers between October 2021 and March 2022 – seven times the number of disputes in the same period in 2019-20. Unite members are currently involved in 30 disputes in England – almost four times the reported number involving the union three years ago.

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From energy costs to TV bills: what has gone up in price today?

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Britons face a shock as household costs soar – and some unexpected items such as beer also go up

It’s been dubbed “bleak Friday” by some: pre-announced price rises for many household bills are to take effect on 1 April, adding to the misery for consumers who are already paying more for goods and food than this time last year.

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UK politics: Public must be told if Carrie Johnson fined for breaking lockdown rules, says Starmer – live

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Latest updates: the Labour leader suggests it is in the public’s interest if the prime minister’s wife is fined over Partygate

Clive Efford (Lab) is asking the questions now.

Q: You have expressed strong views in the past. Is that a problem?

I described the licence fee as regressive. I didn’t think that was an opinion, I thought that was a statement of fact, actually.

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Rishi Sunak tackled over failure to help poorest families

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Experts say absolute poverty could hit a fifth of UK population following chancellor’s mini-budget

Rishi Sunak has sought to defend his mini-budget against accusations he failed to shield Britain’s poorest families from the worst hit to living standards in six decades, as economists warned 1.3 million people will fall into absolute poverty next year.

Amid heavy criticism of Wednesday’s spring statement from opposition leaders and his own back benches, experts from the Institute for Fiscal Studies (IFS) and Resolution Foundation thinktanks said the chancellor could have done more to help those most at need.

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Upshot of Rishi Sunak’s spring statement? A bleak decade ahead

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Analysis: Britain has ceased to be a country where workers can expect to get better off year after year

Much has been written about the year of economic misery ahead. Rishi Sunak’s attempts to mitigate the impact of the squeeze on living standards have been pored over and – generally – found wanting. The postmortem examinations carried out on the chancellor’s spring statement were unflattering.

There was plenty for the thinktanks that specialise in analysing tax, spending and living standards – the Resolution Foundation and the Institute for Fiscal Studies – to mull over.

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Rishi Sunak’s spring statement reopens questions about his political savvy

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Analysis: Clunky media appearances highlight an awkwardness with ordinary voters that was invisible during the pandemic

One of Gordon Brown’s few and oft-repeated jokes was that there are two kinds of chancellor: those who fail, and those who get out in time.

Despite having served little more than two years in the job, Rishi Sunak may have missed the moment to quit – or move next door – while he was ahead, according to Thursday’s front pages at least.

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‘Sticking-plaster measures’: Sunak fails to ease pain of surging costs, say firms

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Hospitality, manufacturing and haulage sectors say spring statement falls far short of the help needed

The spring statement did not deliver much to help Lesters, a small but growing packaging company struggling with rising costs.

The Staffordshire-based firm’s energy bills will rise from £7,000 a month to £18,000 when the current contract runs out. Speaking after Rishi Sunak’s spring statement, Lesters’ managing director, Billy Hutchinson, said the chancellor had offered nothing to help on this key issue.

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Rishi Sunak to promise ‘security for working families’ in spring statement

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Chancellor expected to announce fuel duty cut in package of measures to tackle cost of living crisis

Rishi Sunak will promise “security” to cash-strapped families as he announces a fresh package of measures to tackle the cost of living crisis on Wednesday, but will continue to underline the importance of fixing the public finances.

The chancellor has been under intense pressure to take action to help households with the rocketing cost of fuel and other essentials. The financial expert Martin Lewis told MPs on Tuesday that many households are facing a “fiscal punch in the face” when the energy price cap rises next month.

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Rishi Sunak handed borrowing boost before spring statement

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Figures improve chances of fuel duty or other tax cuts but inflation drives up cost of government debt

Rishi Sunak has been handed a boost from figures showing lower government borrowing than official estimates on the eve of the spring statement.

The figures come despite a sharp rise in debt interest payments last month amid soaring inflation.

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Treasury considers ways to ease cost of living in spring statement

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Reluctant to make big fiscal changes, chancellor Rishi Sunak considers tax adjustments and fuel duty cut

The Treasury has drawn up a range of options to help with the cost of living crisis – including a 1p cut to income tax, raising the national insurance threshold and a significant cut to fuel duty.

But government sources said Rishi Sunak, the chancellor, was still reluctant to make big fiscal changes.

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Raise benefits and pensions to help lower earners, thinktank tells Rishi Sunak

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Resolution Foundation says pegging benefits to inflation will target help to needy better than scrapping NI rise

Rishi Sunak should consider raising benefits and pensions to keep pace with inflation, research has suggested, as the chancellor faced increasing pressure to tackle the cost-of-living squeeze in this week’s spring budgetary statement.

Increasing benefits by an extra five percentage points, by 8.1% rather than the 3.1% currently planned, would give four times as much help for low-to-middle income households for every pound spent as scrapping the planned national insurance rise, the Resolution Foundation said.

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PM to chair roundtable on boosting UK’s nuclear power output

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Meeting comes as Boris Johnson prepares to publish his energy security strategy amid soaring prices and Ukraine war

Boris Johnson will chair a meeting on how to increase the UK’s nuclear power output on Monday, as he prepares to publish his energy security strategy this month amid soaring prices.

The prime minister will discuss domestic nuclear projects with leaders from the nuclear industry at a roundtable meeting at Downing Street, No 10 said.

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Priority is to cut taxes, says Rishi Sunak before spring statement

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Chancellor believed to be considering cut in fuel duty among measures to tackle cost of living crisis

Rishi Sunak has promised that tax increases are “done”, as he dropped a heavy hint that he is preparing measures to tackle the rising cost of living in next week’s spring statement.

The Institute for Fiscal Studies (IFS) said this week that Sunak had announced more tax rises in two years – worth 2% of GDP – than Gordon Brown did in a decade.

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Gordon Brown urges Sunak to address cost of living crisis in spring statement

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Ex-PM warns millions of people will fall into fuel poverty as bills price cap is lifted in April

Former prime minister Gordon Brown has warned the chancellor, Rishi Sunak, that millions more people will be plunged into fuel poverty unless the government uses next week’s spring statement to ease the UK’s cost of living crisis.

A letter to the chancellor, organised by Brown and signed by more than 70 Labour local government leaders, urged the chancellor to adopt a five-pronged approach to help those struggling to make ends meet.

Halt the 1.25 percentage-point increase in employee national insurance contributions.

Restore the £20 a week taken away from 6m households last October.

Provide significantly greater help for energy costs, targeted at the poorest households.

Put in place support for insulation costs for the poorest households as part of a programme for housing retrofits.

Update benefits this year in line with inflation rates.

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UK wages fall at fastest rate since 2014 as cost-of-living squeeze bites

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Unemployment rate falls below pre-Covid level but rising prices and energy bills hitswages

Unemployment in the UK has fallen below pre-Covid levels, but high inflation amid Britain’s cost of living crisis means average wages fell at the fastest rate since 2014.

The Office for National Statistics said the unemployment rate fell to 3.9% in the three months to January, dropping below the 4% rate in February 2020 before the coronavirus pandemic took hold in the UK.

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Tenants face having to find extra £1,000 for 2022 rent and bills

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Hamptons expects sums to become 54% of post-tax income for average rented household in Great Britain

Tenants already struggling with the cost of living crisis typically face having to find an extra £1,000 this year to cover higher rent and essential bills, research shows.

The estate agent Hamptons said tenants’ finances faced a record squeeze as higher rents and energy bill increases combined to pile more pressure on households in Great Britain.

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