Category Archives: UK cost of living crisis

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

Posted on by

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.

Continue reading...

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

Posted on by

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.

Continue reading...

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

Posted on by

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.

Continue reading...

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

Posted on by

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.

Continue reading...

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

Posted on by

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.

Continue reading...

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

Posted on by

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.

Continue reading...

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

Posted on by

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.

Continue reading...

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

Posted on by

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%.

Continue reading...

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

Posted on by

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.

Continue reading...

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

Posted on by

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.

Continue reading...

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

Posted on by

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.

Continue reading...

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

Posted on by

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.

Continue reading...

Rough sleeping in London hits highest level in a decade

Posted on by

Almost 12,000 rough sleepers were seen by outreach workers in 2023-24, a 19% increase on the previous year

Rough sleeping in the capital has hit the highest level in a decade, with more than 1,100 people living on London’s streets for the first time because of evictions.

The number of new rough sleepers seen for the first time by outreach workers between April 2023 and March 2024, surged 25% to 7,974 people – the highest in at least four years. Almost one in 10 people living on the streets was aged 25 or under – including 13 children.

Continue reading...

More than half of UK students working long hours in paid jobs

Posted on by

Lack of maintenance support is creating two-tier higher education system, say experts

More than half of full-time students are working long hours in jobs to support themselves at university, spending nearly two days a week in paid employment during term time, owing to the cost of living crisis.

A survey of 10,000 full-time UK undergraduates by the Higher Education Policy Institute (Hepi) found a record 56% had paid employment while they were studying, working an average of 14.5 hours each week.

Continue reading...

Eight in 10 primary teachers in England spending own money to help pupils

Posted on by

Increasing numbers of children hungry and lack adequate clothing, with two-thirds of secondary teachers also supporting pupils

Eight in 10 primary schoolteachers in England are spending their own money to buy items for pupils who are increasingly arriving at school hungry and without adequate clothing, according to new research.

Almost a third (31%) of those who took part in the survey said they were seeing more hungry children in class, with 40% reporting an increase in pupils coming in without proper uniform or a warm winter coat, research by the National Foundation for Educational Research (NFER) found.

Continue reading...

‘Bloody £9 for two’: TikTok twins rage at ice-cream van prices

Posted on by

Eight-year-olds’ video, which racked up 14m views, hits a sore point for mobilers who have struggled with the cost of living

Like the totemic £8 pint or £5 coffee, the cost of a Mr Whippy ice-cream has become a barometer of a world gone mad. But really, nine quid for two ice-creams? Bloody hell.

That was the damning verdict of an eight-year-old whose TikTok rant over the cost of two screwballs from an ice cream van in the park has racked up 14m views at the time of writing.

Continue reading...

Littler India: why Britain’s south Asian garment stores are struggling

Posted on by

They have been resilient amid wider high street decline – but units are now emptying in areas such as Southall, west London

The south Asian high street is facing a fight for its future in Britain as customers scale back wedding celebrations because of the cost of living crisis and young people’s changing preferences.

Businesses in London and Manchester have said they have witnessed a huge decline in customers after the pandemic with the cost of living crisis prompting many to decide against the traditional big south Asian wedding and to seek out cheaper products online.

Continue reading...

‘It’s catastrophic’: Italian restaurants in London struggle to find staff post-Brexit

Posted on by

UK hospitality industry hit by crisis as thousands of young Italians are forced out by latest round of rules and cost-of-living crisis

Emanuela Reccia has lived in London for almost a decade. She was a teenager when she left her home city of Naples to become a waitress in the UK, bringing her expertise and love of Italian cuisine to the capital.

But the 27-year-old, like thousands of other Italians working in the UK hospitality industry, now feels she has no option but to leave and return to Europe after the latest round of post-Brexit rules.

Continue reading...

Energy bills: standing charges are not standing still

Posted on by

Despite a 12.3% cut in April’s energy price cap, there is an important fixed element in your bill that is rising again

“Great news! Your unit rates are going down.” E.ON’s letter to customers starts with glad tidings – but, as it soon admits, there is an element of their bills that is set to go up in most parts of the country.

Despite a headline cut of 12.3% in April’s energy price cap, yet again standing charges are rising. In E.ON’s case, on its Next Flex tariff, electricity charges are due to rise from 62.205p to 67.9041p – an increase of just over 9% – while for gas, charges go up from 29.595p to 31.894p (up almost 8%).

Continue reading...

Next cheers retail sector with bumper profits and talk of falling prices

Posted on by

Shares hit new high as chain says consumer backdrop is improving and ‘feels like it is now entering a new era’

Next said the prices it charges customers are falling this year, as the fashion and homeware retailer reported bumper profits and said the UK consumer backdrop was improving.

Simon Wolfson, the group’s chief executive, said that it had been “a long time” since the group had started a financial year in such a positive frame of mind after the positive sales and growth results for the year to January.

Continue reading...