Category Archives: UK cost of living crisis

Major UK investors join push for retail giants to pay workers ‘real living wage’

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Axa and Scottish Widows back ShareAction campaign for chains such as Next to pay at least £12.60 an hour

Major investors including Axa and Scottish Widows are backing shareholder resolutions pressing retailers Next, Marks & Spencer and JD Sports to increase pay for thousands of workers.

More than 100 individuals and eight institutional investors, which manage over £1tn in assets, are backing an effort to encourage companies to pay a “real living wage”, which is designed to ensure workers can cover necessary household costs.

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Labour mayoral candidate on race to stop Reform – and ‘Doge Lincolnshire’

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Jason Stockwood, ex-chair of Grimsby Town FC, has plan for keeping rival Andrea Jenkyns from implementing US-style cuts

Labour can beat Reform UK by focusing relentlessly on the cost of living, the party’s mayoral candidate for Greater Lincolnshire, who is taking on the Conservative defector Andrea Jenkyns, has said.

Jason Stockwood, the former chair of Grimsby Town football club, is standing for Labour in the most high-profile mayoral race of the local elections.

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Energy network owners have made £3.9bn from higher bills, says report

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Citizens Advice believes Ofgem made flawed interest rate calculation for companies in Great Britain

The companies behind Great Britain’s gas pipes and power lines have pocketed a windfall of nearly £4bn from household bills during the energy and cost crisis, according to a report.

The analysis, by Citizens Advice, argued that energy network owners were able to make the “excess profits” over the past four years after the industry regulator misjudged their costs.

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Government under pressure on economy as British households anticipate worsening finances

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CBI says businesses plan to cut jobs and raise prices while debt charity says millions are ‘facing worries’

The government is under growing pressure to get momentum back into the economy amid warnings that businesses plan to cut jobs and raise prices, while millions of families believe their finances will worsen this year.

Before a major speech this week by the chancellor, Rachel Reeves, designed to restate Labour’s commitment to improving the economy, the CBI said private sector firms were urgently assessing their budgets to offset measures announced in last October’s budget.

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One in six UK workers skipping meals to make ends meet, says TUC

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Trade unions body finds 17% have skipped meal in past three months, and as many as 10% do so most days

As many as one in six workers in Britain are skipping meals to make ends meet as households remain under pressure from the higher cost of groceries, energy and other essentials.

Highlighting the impact of the cost of living crisis on working households, figures from the Trades Union Congress (TUC) showed 17% of full- or part-time workers had skipped a meal to reduce their spending in the past three months.

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Give working parents help with childcare and commuting costs, UK thinktank says

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Child poverty plan must address the 70% of families with at least one parent in work, Resolution Foundation says

Labour must offer extra support to working parents, including with childcare and commuting, if it is to fulfil its promise of cutting child poverty, the Resolution Foundation thinktank has argued.

The government’s manifesto promised an “ambitious strategy” on child poverty, and ministers have said they will publish a 10-year plan in the spring.

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Boxing Day footfall down on UK high streets despite discounts

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Data may reflect shift in behaviour influenced by cost of living crisis or front-loading of spending

Fewer consumers made the journey to high streets and shopping centres in search of Boxing Day discounts this year.

Footfall across UK retailers was down 8.9% as of 3pm on Thursday, compared with Boxing Day in 2023, according to data from MRI Software.

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Energy bills, mortgages, food: will cost of living surge again under Labour?

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The government claims to be fixing the economy but households may face more pressure in the months ahead

Labour swept to power in the wake of a cost of living crisis that hit households hard, with the price of food and energy rocketing alongside the impact of Liz Truss’s disastrous mini-budget on mortgage rates.

At 2.3%, inflation is nowhere the 10% peak after Russia’s invasion of Ukraine, but it is creeping up, and could hit 3% in 2025, say forecasters.

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E.ON must pay £14.5m to prepayment customers after billing failures

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Ofgem says nearly 250,000 people will each receive average of £144 in compensation and refunds

The energy regulator has ordered power supplier E.ON Next to pay £14.5m in compensation to nearly 250,000 prepayment customers, after an investigation found “unacceptable” failures to pay credit they had on accounts or final bill payments they were owed.

Ofgem found that the customers were affected over an 18-month period from early 2021 to late last year by an error in E.ON Next’s billing system. About 100,000 of the affected accounts were also in credit.

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UK’s inflation jump dashes hope of interest rate cut in December | Heather Stewart

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Rate cut unlikely until 2025 as energy prices blamed for stronger-than-expected inflation of 2.3%

Any lingering hope that the Bank of England might deliver a pre-Christmas interest rate cut next month appears to have evaporated, after official data showed inflation jumping to 2.3% in October.

The CPI measure had been expected to tick up, after dipping to 1.7% in September, but 2.3% was stronger than expected.

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Reeves’s long-term spending figures almost as unrealistic as Tories’ were, IFS says – UK politics live

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Institute for Fiscal Studies says budget ‘looks like the same silly games’ as seen under the Conservatives

Rachel Reeves is now being interview on ITV’s Good Morning Britain.

She is being interviewed by Ed Balls, the former Labour shadow chancellor who is now a TV presenter. He asks her to confirm that workers will end up losing out because of the employers’ national insurance contributions (NICs) increase.

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Rachel Reeves will tax businesses to plug £9bn black hole in NHS

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The chancellor is set to announce a revenue-raising budget designed to reset Britain’s public finances

Rachel Reeves is set to use one of the most pivotal budgets of recent times to call on businesses to pay more tax to help restore the NHS, amid warnings that the health service has been left with a £9bn hole in its finances.

The chancellor is expected to stake her reputation on a tax-­raising budget designed as a reset of the public finances. She has already had to deal with cabinet skirmishes over funding unveiled alongside the statement. However, Reeves is understood to believe that the public will accept a multibillion-pound hike in business taxes if it is linked to repairing the health system’s finances.

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UK ‘risks repeat of surging energy bills’ amid continued reliance on gas

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Energy crisis panel warns country is ‘dangerously unprepared’ and must shift away from gas quickly

Britain is at risk of experiencing a repeat of the sharp increase in energy costs which has fuelled the continuing cost of living crisis because it relies too heavily on gas, according to an expert panel of industry leaders.

The Energy Crisis Commission has warned that the UK is still “dangerously underprepared” for another crisis because it continues to rely on gas for its power plants and home heating.

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Pension pot amount needed for ‘basic’ retirement rises 60% in three years

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Research shows ‘alarming’ rise in essential living costs during retirement, with low-paid workers worst affected

The average pension pot needed for a “basic” retirement has risen by almost 60% in three years, according to research that highlights how the UK cost of living crisis has left many workers fearing they will never be able to retire.

The study from the Resolution Foundation thinktank and the Living Wage Foundation found that a number of price rises across housing, energy, food and transport had helped “significantly” increase the cost of securing an adequate income in retirement.

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Branded UK school uniforms cost more than double high-street prices, analysis reveals

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The Children’s Society urges schools and government to ensure ‘undue financial strain’ is not placed on families

Parents are routinely paying more than double the price for branded school uniforms compared with similar items offered by supermarkets and high-street stores, an analysis by the Observer reveals.

Despite government guidance to reduce costs, the analysis shows that parents who are required by state schools to buy clothing featuring official school logos are still paying significantly more than for unbranded blazers, jumpers, ties and sports kit.

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UK shop prices fall year on year for first time since cost of living crisis began

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Prices down 0.3% in first week of August as food inflation eases and retailers attempt to shift unsold summer stock

UK shop prices have dropped for the first time since the cost of living crisis began nearly three years ago, as food inflation eased and retailers offered discounts on clothes and household goods to shift unsold summer stock.

New data showed prices were down 0.3% in the first week of August, compared with the same period last year. That compares to a 0.2% rise in July, and the three-month average of 0%.

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Average annual energy bill to rise by 9.5% to £1,717 in Great Britain from October

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Campaigners fear increase by £149 in energy price cap by Ofgem will put more pressure on households

Households will begin the run-up to winter with a sharp increase in their energy bills after the industry regulator increased its cap on energy prices by 9.5% from October.

Under the new price cap, the average annual energy bill will rise to £1,717 a year for gas and electricity, up £149 from its current level of £1,568, which has been in place since July.

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Wealth taxes could raise £10bn to help plug Tory budget hole, say economists

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Reforms to inheritance and capital gains taxes could reduce £20bn shortfall and combat UK’s widening wealth gap

Rachel Reeves could quickly find around £10bn a year to plug half of the fiscal hole left by the Conservatives if she were to raise taxes on soaring levels of unearned wealth, according to leading economists.

New research by the independent Resolution Foundation published today finds that Britain is a country of “booming wealth” but “busted wealth taxes”, leaving ample potential for the chancellor of the exchequer to raise desperately needed funds by raising taxes on the richest.

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Greens to push Labour to ‘be braver’ on climate, sewage and cost of living

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Party co-leader and new MP Carla Denyer says election shows voters ‘have had enough of incremental change’

The Green party will push the incoming Labour government to “be braver” on key issues, from the climate crisis and sewage in rivers to housing and tax, according to Carla Denyer, the party’s co-leader and one of its four new MPs.

The party quadrupled its number of MPs, beating Labour in Bristol Central and Brighton Pavilion and the Conservatives in Waveney Valley and North Herefordshire.

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Unpaid UK carers ‘face financial hit that can last decades’

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Loss of income, curbs on benefits and soaring bills are piling pressure on people caring for family members

People who look after family members free of charge are taking a huge hit to their finances which could continue into their retirement as they find themselves unable to balance paid work with their caring commitments.

Recent analysis of official figures by the financial firm Just Retirement found seven in 10 people who were receiving carer’s allowance were not in paid work, and missing out on earnings and private pension contributions.

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