UK shoppers slash spending as price rises and energy bills bite

February figures from BRC highlight impact of cost of living crisis on British economy before budget

UK consumers sharply cut back their spending in February as soaring living costs damaged household finances, retailers have warned, despite strong sales of jewellery and fragrances for Valentine’s Day.

Highlighting the impact of the cost of living crisis on the economy before Jeremy Hunt’s budget next week, the British Retail Consortium (BRC) said sky-high energy bills and the rising cost of a weekly shop were forcing shoppers to cut back.

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Cost of first class stamp to rise above £1 for first time, Royal Mail announces

First class stamp £1.10 from April and second class 75p as firm predicts £450m operating loss

The cost of a first class stamp will rise to £1.10 early next month, Royal Mail has announced, breaking the £1 barrier for the first time.

The company said it would increase the price of a first class stamp by 15p from 3 April, a year after it went up by 10p to 95p. The price of a second class stamp is also going up, by 7p to 75p.

The secondary headline on an earlier version of this article gave the incorrect price for second class stamps. This has now been corrected.

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Selfish or a godsend? Readers share their views on wood-burning stoves

Demand for wood stoves is soaring in energy crisis despite research showing their harmful effects

Demand for wood-burning stoves, including in urban areas, has soared as households look for more affordable ways to stay warm during the energy crisis.

Campaigners have called for stricter legislation on their use because of their negative impact on air pollution and health, with wood burning in the UK gaining in popularity over the past decade.

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UK cuts back on cooking Sunday roasts as energy bills soar

Cost of living has made more than a third of adults reconsider cooking end of week meal, survey finds

More than a third of people in the UK have cut back on cooking Sunday roasts because of the soaring cost of energy bills, according to a survey.

A total of 36% of UK adults said the cost of living crisis had made them reconsider a homemade roast dinner at the end of the week. The figure was even higher among those aged 16 to 34, with nearly half (47%) saying they have avoided cookingroasts.

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Revealed: record number of households in UK depending on food banks

Almost 90% of food banks see increased demand, as organisers fear having to cut support or turn people away

More people are depending on food banks than ever before in Britain, new figures show, as “ever-increasing” numbers of households – including pensioners, NHS staff and teachers – seek help amid the cost of living crisis.

New research by the Independent Food Aid Network (Ifan), shared with the Observer, found that almost 90% of food banks surveyed reported increased demand in December 2022 and January 2023 compared with a year earlier. Half of the 85 organisations running 154 food banks that responded said if demand rose further they would either have to cut support or turn people away.

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Number of days lost to strikes is highest since the Thatcher era

Squeeze on households as pay growth falls at among fastest rates for 20 years

The number of working days lost to strike action last year reached the highest level since 1989, according to official figures showing that wage growth failed to keep pace with inflation amid the biggest real-terms fall on record.

The figures from the Office for National Statistics further highlight the squeeze on households in the cost of living crisis.

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Act now on energy bills subsidy or see fuel poverty surge, says Martin Lewis

Jeremy Hunt urged to reconsider raising state-subsidised energy rate from April as market prices make delay affordable

Jeremy Hunt must act now to reverse plans to raise energy bills from April, MoneySavingExpert’s Martin Lewis has warned, saying the change cannot wait until the spring budget next month.

In a letter to the chancellor seen by the Guardian, Lewis warned more than 1.7m more households could be plunged into fuel poverty if he does not urgently commit to freezing energy prices.

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Greenpeace threatens legal action over UK failure to meet fuel poverty targets

Government plans to upgrade energy efficiency of homes will help only 5.8% of fuel poor households by 2030, campaign group claims

Greenpeace is threatening to take legal action against the government as it emerged a target to lift millions of struggling households out of fuel poverty is likely to be missed.

Government plans to upgrade the energy efficiency of homes will help fewer than 6% of fuel poor households by 2030, according to the environmental campaign group.

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Teachers handing out toothpaste as rising UK costs hit pupils’ dental health

Three-quarters of teachers surveyed say they have noticed children lacking access to toothpaste and toothbrushes

Four out of five UK teachers have given toothbrushes and toothpaste to students, with the cost of living crisis affecting the oral health of children, according to new research.

A survey of secondary teachers by hygiene poverty charity Beauty Banks and the British Dental Association (BDA) has revealed that 81% of teachers say some children in their school have no access to toothpaste, with 41% saying this leads to them being socially excluded because of poor oral hygiene.

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Stop UK mobile and broadband firms ‘lining their pockets’, urge consumer experts

Companies facing backlash amid warning of mid-contract price rises of up to 17% during cost of living crisis

Britain’s telecoms regulator is being urged to intervene over concerns that mobile and broadband operators are “lining their pockets” with £2.2bn of above-inflation price rises during the cost of living crisis.

While ministers have urged employees to show pay restraint, the mobile phone and broadband firms are facing a consumer backlash as they announce record price increases.

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Wave of protest plays staged as UK theatres face closures and staff shortages

In several new productions, playwrights explore the cost of living crisis as their industry reels from funding cuts, cancellations and low wages

‘What galvanises me to get up in the morning and write is what is making me angry, upsetting me, frightening me,” says playwright Emily White. Like her previous plays, White’s next production, Joseph K and the Cost of Living, opening at Swansea Grand next month, seeks to make the political personal. It is a reimagining of Kafka’s nightmarish The Trial, whose protagonist is unexpectedly arrested but not told what for and always maintains his innocence.

White was a teenager when she first read the novel, about “being trapped in this kind of bureaucratic machine”, but she returned to it more recently after feeling that there was a “creeping authoritarianism” happening, with marginalised people’s rights “being clawed back by governments all over the world”. She continues: “In my version, it’s a story about state-led persecution of particular individuals and the reasons for that. And, in the background, we are very much today in Britain, in this world that we’re living in right now.” The play is set, she says, in a country that feels as if it is teetering on the brink of resistance and revolution. As such, the story incorporates food banks, homelessness, environmental protests, strikes and the government’s attempt to limit direct action.

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Disruption across UK as strikes hit schools, trains, universities and border checks – as it happened

UK public warned of ‘significant disruption’ from strikes involving teachers, civil servants, Border Force staff and train drivers

Kevin Courtney, joint general secretary of the National Education Union, speaking from a teachers’ picket line in Warwick, said:

I think Gillian Keegan [the education secretary] is hoping our strike is ineffective and people won’t do it again.

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Labour’s Rachel Reeves aiming to be ‘Britain’s first green chancellor’

Frontbencher to call for more help with energy bills for householders and to promise massive green power programme

Rachel Reeves has said she wants to be “Britain’s first green chancellor” ahead of a speech in which she will call on ministers to extend relief on energy bills and promise that Labour will reduce these in the longer term with a massive green power programme.

Addressing the Fabian Society conference on Saturday, the shadow chancellor is to argue that investment in renewable energies, plus a huge programme to retrofit insulation to homes – part of Labour’s flagship £28bn-a-year investment in climate measures – could save households up to £1,400 off annual bills each year.

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Retail sales in Great Britain fall as shoppers rein in festive spending

Surprise December drop a result of cost of living crisis forcing people to cut budgets in run-up to Christmas

Retail sales in Great Britain unexpectedly fell by 1% last month as the cost of living crisis forced households to cut back on spending in the run-up to Christmas.

The Office for National Statistics (ONS) said the surprise decline in sales volumes – economists had forecast a rise of 0.5% – was down to factors including rampant increases in food prices and a decline in online purchases as consumers worried about a wave of postal strikes affecting Christmas deliveries.

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King Charles redirects £1bn windfarm profits towards ‘public good’

Wind energy agreements have generated windfall that would normally go towards monarchy

The King has asked for profits from a £1bn-a-year crown estate windfarm deal to be used for the “wider public good” rather than as a funding boost for the monarchy.

Under the taxpayer-funded sovereign grant, which is currently £86.3m a year, the King receives 25% of the crown estate’s annual surplus, which includes an extra 10% for the refurbishment of Buckingham Palace.

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Aldi increases pay for UK warehouse workers for third time in a year

Supermarket’s rise to £13.18 on 1 February puts hourly minimum rate 20% ahead of January 2022

Aldi is increasing pay for UK warehouse workers for the third time in a year – with the hourly minimum rate now 20% ahead of last January.

The German-owned discounter, which is the UK’s fourth-largest supermarket chain, said pay would rise to £13.18 on 1 February, up 4% on the current minimum of £12.66, which was introduced in September.

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Energy bills: calls for ‘social tariff’ when UK government support ends

Charities and non-profit bodies urge Jeremy Hunt to introduce discount tariff from April 2024

Jeremy Hunt is facing calls for a “social energy tariff” providing cheaper gas and electricity for low income households to be introduced when government support ends next year.

In an open letter to the chancellor, 95 charities and non-profit organisations have urged the government to move quickly to legislate for a change in energy bills for “those in greatest need to ensure they are able to live in their homes comfortably”.

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Keir Starmer says SNP and Westminster using gender recognition bill for political advantage – UK politics live

Labour leader tells LBC issue is being used as a political football after Scottish Tory MSP urges PM not to block bill

This is what Keir Starmer said in his LBC interview about Scotland’s gender recognition reform bill, and the UK government’s reported intention to block it.

Starmer suggested the SNP and the Tories were both exploiting the Scottish gender recognition bill for political advantage. He said:

I am worried about the fact that I think this is being used by the SNP as a sort of devolution political football. And I think it’s being used by the government – or might be used – as a divisive football in relation to the particular issue.

On this whole issue of trans rights, I think the government is looking to divide people rather than bring people together.

He refused to say whether Labour would support the UK government if it did block the legislation. When it was put to him that, from what he was saying about his reservatations about the bill that he was minded to support Rishi Sunak on this, he did not accept that. He said he would want to see exactly what the government said before deciding how to react. Blocking Scottish legislation would be “a big step for a government to take”, he said. But he also said No 10 was treading “very, very carefully” (which rather undermines the claim he made about the Tories potentially exploiting this for party political advantage).

He said that he accepted the Gender Recognition Act needed to be modernised. But he confirmed that he thought people should not be able to self-certify their gender at the age of 16 (as they would be able to, under the Scottish law). And he said that he was worried about the potential impact of the Scottish bill on UK equality laws.

He said that only a tiny proportion of people were likely to want to change gender. He said:

I approach it on the basis that for 99.9-something percent of women it is all about biology, sex based rights matter, and we must preserve all those wins that we’ve had for women over many years, and including safe spaces for women.

Whilst I am sympathetic to the change that is made to make the rights of trans people in Scotland, I think we may have a clash between the position in the UK-wide legislation and the position in Scotland …

[The legislation] may mean – even though I suspect political mischief on the part of the Conservative Government and culture wars – they may have a point. It is arguable at least that what’s happened in Scotland has a potential impact on the legislation as it operates UK-wide.

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Davos’s elite will need to do some soul-searching in a world falling apart

The first proper World Economic Forum for three years will take place against a humbling backdrop of crisis and conflict

The war in Ukraine. A rapidly slowing economy, fragmentation and de-globalisation. The rising cost of living. Climate change. There is plenty for the global great and good to get their teeth into this week as Davos resumes after a three-year hiatus.

Strictly speaking, it not the first gathering of world leaders, businesspeople, academics and civil society since the start of the pandemic, but last May’s World Economic Forum event was a slimmed-down and not especially well-attended affair. As a dry run it was fine, but a real Davos traditionally happens in January, when the snow is thick on the ground in the Swiss village 1,500 metres up in the Alps. In the past, the mood at Davos has oscillated between extreme optimism and unbridled gloom, depending on the state of the world economy. This year it looks certain to be the latter. As Klaus Schwab, founder and executive chair of the WEF put it last week, “economic, environmental, social and geopolitical crises are converging and conflating”. The aim of this year’s Davos, he added, was to get rid of the “crisis mindset”.

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Hopes of sharp fall in household energy bills as HSBC cuts gas price forecast

Bank slashes predicted 2023 European wholesale price by 30% as mild weather reduces demand

HSBC has slashed its forecasts for future wholesale gas prices in response to mild weather in Europe – raising hopes of a sharp decline in household energy bills.

The bank cut its 2023 forecasts for the price of gas traded in Europe by about 30% and its forecast for 2024 by 20%.

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