Category Archives: UK cost of living crisis

Treasury analysing whether removal of tampon tax has lowered prices

Posted on by

Cost of period products has risen and campaigners say saving is not being passed on by retailers

The Treasury is analysing whether the removal of the “tampon tax” – trumpeted last week by Rishi Sunak as one of the benefits of Brexit – has helped lower prices at all, amid concerns the saving is not being passed on by retailers to women.

Responding to a written question from the Labour MP Ruth Cadbury, the government said a tax reduction was able to “contribute to the conditions for price reductions” and it was “looking into whether this important zero-rating is being passed on by retailers to women as intended”.

Continue reading...

‘The whole thing stinks’: UK water firms to pay out £14.7bn in dividends as customers foot sewage costs

Posted on by

With cost of cleanup to be passed on to bill payers, analysis shows they will also pay £624 more by 2030 to fund investor payouts

Water companies will pay an estimated £14.7bn in dividends by the end of this decade, while making customers pay for new investment to stem the tide of sewage pollution in seas and rivers, analysis for the Observer has revealed.

Liberal Democrat MP Tim Farron denounced the billions going to shareholders as “absolutely scandalous” while families struggling with the cost of living would be facing increases in bills to pay for the sewage cleanup.

Continue reading...

Energy bills could fall to average of £2,053 as Ofgem prepares to lower cap

Posted on by

But campaigners say it will not give much relief to struggling households as government support ends

Household energy bills could fall to an average of £2,053 a year this summer as the regulator prepares to lower its cap on energy prices next week, according to analysts.

However, campaigners have warned that the lower cap on energy bills, to be announced on Thursday, is unlikely to provide much relief to households that struggled to pay their bills over the winter because the government’s support schemes have come to an end.

Continue reading...

Asda plans 5% pay cut for about 7,000 workers just outside London

Posted on by

Supermarket is consulting about removing a 60p an hour supplement at 39 stores outside M25 despite the cost of living crisis

Asda is planning to cut pay for about 7,000 workers in stores close to London by about 5% despite the surge in the cost of living in Britain.

The UK’s third biggest supermarket, which was bought by the billionaire Issa brothers and private equity firm TDR Capital in 2020, said it was in consultation about removing a 60p an hour supplement from workers at 39 stores sited outside the M25 but near to the capital.

Continue reading...

Rishi Sunak’s upbeat view on economy stokes claims he is out of touch

Posted on by

On flight to Japan for G7, PM says ‘economic optimism is increasing’ and insists Brexit is working

Rishi Sunak has been accused of being out of touch with ordinary families after claiming the economy was looking up and people’s household incomes were “hugely outperforming” expectations despite the cost of living crisis.

On a flight to Japan for the G7 summit of world leaders, the prime minister said that despite consumers struggling with high inflation and the cost of food and energy, there were “lots of signs that things are moving in the right direction” with the economy.

Continue reading...

Ann Widdecombe: don’t have cheese sandwiches if you can’t afford them

Posted on by

Ex-Brexit party MEP says there is no ‘given right’ to low food prices despite families struggling with cost of living

Families should go without cheese sandwiches if they cannot afford the ingredients, Ann Widdecombe has said.

The former Brexit party MEP said there was no “given right” for low food prices, despite being told families “cannot afford to feed their children” and were having to make huge sacrifices as the cost of living crisis deepens.

Continue reading...

No 10 food summit ‘no more than a PR stunt’ and failed to tackle key issues

Posted on by

Rishi Sunak’s Farm to Fork meeting, the first of its kind, failed to address solutions to inflation, soaring costs and food security, say attenders

Rishi Sunak’s Downing Street food summit has been described as “empty" by food and farming industry representatives, who rounded on the prime minister for failing to discuss soaring inflation or set out measures to safeguard British food production.

The Farm to Fork summit, the first meeting of its kind, brought together farmers, food producers and some of Britain’s largest supermarkets.

Continue reading...

Sunak food summit promises star guest and lots of rhubarb

Posted on by

It’s hard to see the PM’s talks with farmers, store chiefs and the (rumoured) odd TV star producing concrete proposals

Farmers throwing in the towel amid soaring costs and labour shortages and falling domestic production of some foods have resulted in repeated gaps on British supermarket shelves – much to shoppers’ chagrin.

UK agriculture has had a torrid few years navigating the fallout from Brexit and the pandemic at a time when squeezed consumers are reassessing what they can afford to put in their shopping baskets.

Continue reading...

UK households missing out on £19bn a year in unclaimed welfare benefits

Posted on by

Complexity of system and perception of government handouts as ‘shameful’ stopping people from accessing much-needed support

Millions of UK households are collectively missing out on at least £19bn a year in unclaimed welfare benefits, at a time when many are forced to use food banks or run up debt as they struggle with rising living costs, according to new estimates.

Lower income households are failing to claim benefits and other cash support for which they are eligible, according to a study by the consultancy Policy in Practice. Some families could be forgoing as much as £4,000 a year.

Continue reading...

Vulnerable UK women forced into ‘sex for rent’ by cost of living crisis

Posted on by

Some women are turning to escort work to meet basic housing costs, charities warn

Women are increasingly being forced to engage in “survival sex” because of the cost of living crisis amid worsening conditions for Britain’s most vulnerable.

Charities warn rising costs paired with years of underfunding mean women, including those with trauma and mental health issues, are having to turn to sex in exchange for housing or to meet other basic needs.

Continue reading...

Sainsbury’s and Unilever deny claims of profiteering in cost of living crisis

Posted on by

Supermarket chain and consumer goods company insist they are protecting shoppers from inflation surge

Sainsbury’s and the Marmite maker Unilever have both insisted they are protecting shoppers from inflation, amid accusations that some companies are profiteering from the cost of living crisis.

“We are not profiteering in any form,” the chief executive of Unilever, Alan Jope, said as the consumer goods company insisted it was only passing on three-quarters of its increased costs to customers.

Continue reading...

More than 500,000 people in UK visited ‘warm rooms’ during the winter

Posted on by

Exclusive: First audit of spaces reveals people visited to due to loneliness as well as to keep warm

More than half a million people visited community “warm rooms” to escape freezing homes and escalating poverty during the winter, according to the first audit of the impact of these potent symbols of the UK’s cost of living crisis.

Warm space projects sprang up in their thousands across the UK in the autumn, as charities, libraries and faith groups responded to soaring energy poverty by opening venues to provide cash strapped people with warmth, free food and a cup of tea.

Continue reading...

Amazon workers in Coventry begin first of two three-day strikes

Posted on by

Workers gather at picket line on Sunday in ongoing demand for pay increase from £11 to £15 an hour

Workers at Amazon’s Coventry warehouse have begun a fresh round of strike action in a dispute about pay during the cost of living crisis.

GMB union members are planning three days of strikes at the huge Coventry centre, known as BHX4, from Sunday 16 to Tuesday 18 April, to be followed by three further days, from 21 to 23 April.

Continue reading...

Shoppers in Great Britain switch to frozen food amid cost of living crisis

Posted on by

Such products doing ‘notably better’ than fresh items, data from Kantar reported by BBC shows

British shoppers are switching from fresh to frozen food as they try to keep down spending amid the cost of living crisis, retail data suggests.

The soaring cost of the weekly shop has been a significant factor in the squeeze on UK households, with food price inflation running at 18.2% amid high energy prices and shortages of salad vegetable because of bad weather in Europe.

Continue reading...

Medical crowdfunders for Britons surge amid record NHS waiting lists

Posted on by

Appeals to pay for private care linked to waiting lists or cost of living crisis have soared since Covid pandemic

The number of Britons crowdfunding for private medical care has soared since the Covid-19 pandemic, as NHS waiting lists continue to reach record lengths.

Figures provided to the Guardian by GoFundMe, a website that helps people raise money, show 84% more medical crowdfunders mentioning “waits” or “waiting lists” were launched this March than in January 2019, before the pandemic.

The number of medical campaigns containing the words “go private” or “privately” had also doubled.

Continue reading...

Labour to take aim at Sunak’s leadership on cost of living crisis

Posted on by

Party will continue to single out PM, after campaign ad last week that led to accusations of ‘dog-whistle’ politics

Keir Starmer will shift his aim this week on to Rishi Sunak’s role in presiding over the cost of living crisis after days of anger over Labour’s crime campaign.

The party will continue to single out the prime minister in the minds of voters, claiming “his fingerprints are all over their struggling household budgets”, as part of an attempt to hold Sunak – still seen by some as a change of the Tory old guard – personally accountable for 13 years of Conservative failures.

Continue reading...

UK cost of living crisis leading people to gambling, says charity

Posted on by

Survey by GamCare found gamblers trying to win money for bills, or using betting shops to stay warm

People are turning to gambling to help them with the cost of living crisis – from trying to win money to pay bills to using betting shops as warm banks, a gambling charity has said.

The charity GamCare said that while this was likely to exacerbate financial stresses, research found four in 10 (42%) problem gamblers believed that gambling would improve their financial situation in the next year compared with just 7% of UK adults.

Continue reading...

One in three young teachers in England skipping meals to make ends meet

Posted on by

NEU survey also finds one in five teachers aged 29 or under have taken on a second job as pay fails to keep up with cost of living

One in three young teachers in England are skipping meals and spending less on food because their pay has failed to keep up with the rising cost of living, while others are taking second jobs, a survey has found.

More than 8,000 state school teachers in England contacted by the National Education Union revealed that 34% of teachers aged 29 or younger said they have been forced to skip meals to make ends meet, with one in five saying they have taken on a second job in addition to teaching full-time.

Continue reading...

Calls for energy ‘social tariff’ as UK government support ends

Posted on by

Low-income household will spend on average £200 more on bills than last year, Which? warns

Some of the UK’s least well-off households could be left more than £200 worse-off on their energy bills this year because of reduced government support, the consumer body Which? has warned.

Joining calls made by other campaigners, it said the government urgently needed to introduce a “social tariff” for gas and electricity to protect the most financially vulnerable.

Continue reading...

Jeremy Hunt makes U-turn on planned cut to energy support

Posted on by

Campaigners unite with suppliers to call on ministers to give long-term help to struggling households

Ministers are under pressure to announce plans for a social tariff to help Britons struggling with their energy bills over the long term, after the government performed a U-turn on a planned cut to support for households.

On the morning of the chancellor Jeremy Hunt’s budget speech, the government confirmed the energy price guarantee would continue at its current rate, which limits a typical annual household bill to £2,500. It is being extended from April, when it was due to expire, for a further three months until the end of June.

Continue reading...