Category Archives: UK cost of living crisis

Call to end forced installation of UK prepayment meters after millions suffer without power

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Report shows 3.2m people disconnected last year as they ran out of credit

Ministers are being urged to stop the forced installation of prepayment meters after revelations that 3.2 million people – the equivalent of one person every 10 seconds – were left with cold and dark homes last year as they ran out of credit.

As energy prices surged this winter, suppliers have stepped up the use of court warrants to force their way into homes to install prepayment meters, with some magistrates approving hundreds of applications at a time. For homes with smart meters, the change can be made remotely without even needing a warrant.

Rhiannon, a single parent with a baby who suffers from depression, fell behind on her payments after she separated with her partner. Her landlord allowed her supplier access to fit a prepayment meter. She has resorted to warming baby milk at her GP’s surgery and staying warm in her dad’s car.

Rona uses a wheelchair and lives with her daughter who has special educational needs. She is reliant on family to go to the Post Office to top up and was left without heating, lighting or means to make food over Christmas.

Alice, a woman with a lung condition who was moved on to a prepayment meter due to debt and couldn’t afford to top up. Her supplier told her she could not be helped again because she had been helped before, but being cut off prevents her charging her breathing machine.

Andy, a diabetic who was moved on to a prepayment meter and left without power for a week despite needing to keep his insulin in the fridge.

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Junior doctors very likely to vote for strike, says BMA, as ministers hold meetings with health, education and rail unions – live

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Medical union balloting 45,000 members from today over strike in March as ministers meet unions in effort to end disputes

Good morning. There are various meetings taking place today between ministers and union leaders representing workers in health, education and the rail industry after Rishi Sunak called last week for both sides to get around the table. This is quite a shift from the pre-Christmas position when ministers insisted it was up to management negotiators to take the lead in talks with unions. At the end of last week it was not clear whether this was mainly a presentational ploy (Sunak wants the government to be seen as “reasonable’”), or whether significant concessions might be in the pipeline, but yesterday, as my colleague Pippa Crerar reports, Sunak hinted it was the latter in his start-of-year interview with Laura Kuenssberg.

But it is quite possible that the strike crisis could get worse before it gets better. The British Medical Association is from today balloting 45,000 junior doctors in England on strike action and, if they vote in favour, a 72-hour strike is planned from March. This morning Dr Emma Runswick, the BMA’s deputy chair, told Sky News that the chances of a strike were “very high”. She explained:

[Health secretary] Steve Barclay’s planning to meet with us on Wednesday but only to discuss a very narrow set of things. He’s talking about the evidence that the government will submit to the pay review body. Unfortunately, they’ve already submitted their remit letter to the pay review body telling us and them that we only should receive 2% next year.

So, that’s another massive pay cut after we’ve had a pay cut this year, and for the previous 15 years. Again, another pay cut on top of the quarter pay cut we’ve already received, so I’m not optimistic … about the meetings, though we will go and we will negotiate if that is an available option to us.

We’re asking for the reversal of that pay cut [over the last 15 years]. So, mathematically, it might even be more and if we have another pay cut this year, it’ll be more again. So, we’re only asking for what we’ve had cut from us back.

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Sunak invites unions to talks on Monday as senior Tory calls on government to improve pay offer to nurses– UK politics live

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PM offers no hint he will compromise on pay offers as former cabinet minister says nurses key to dealing with NHS pressures

The journalist interviewing Rishi Sunak this morning did not press Sunak on excess deaths because he needed to ask some questions about Prince Harry’s memoir. But Sunak would not go near the topic.

Asked how he felt seeing the royal family “torn apart” by these claims and revelations, Sunak replied:

As you would expect, it is not appropriate for me to comment on matters to do with the royal family.

I wouldn’t comment on matters to do with the royal family. I would just say I am enormously grateful to our armed forces for the incredible job they do in keeping us all safe. We’re all very fortunate for their service.

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Average UK house price falls for fourth month in a row, says Halifax

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Figure of £281,272 comes as property values drop by 1.5% in December, after 2.4% decline in November

The average UK house price fell for the fourth month in a row in December, according to Halifax, with experts expecting a further slowdown amid a long recession.

Property values decreased by 1.5% in December, the lender’s monthly index revealed, after a 2.4% drop in November, a 0.4% decrease in October and a 0.1% dip in September.

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Keir Starmer to promise ‘completely new way of governing’ in major speech – UK politics live

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Latest updates: Labour leader to say he plans to move away from the ‘sticking plaster politics’ of short-term decision making

Mick Whelan, the general secretary of Aslef, which represents train drivers, told the Today programme this morning that he did not think the anti-strike legislation proposed by the government (see 8.48am) would make life harder for his union.

He suggested the law would lead to unions like his having to organise strikes across more localised units, instead of nationally.

If we’ve got to sit down in 15, 20 or 30 different undertakings and agree different levels of [minimum service], all it means is that we put more strikes on to pick up the shortfall, create greater strife, the connectivity of the railway falls apart, the logistically it’s impossible.

There have been minimum [service] levels in European countries for several years. They have never been enacted because they don’t work.

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Labour dismisses Rishi Sunak’s five new pledges as mostly ‘so easy it would be difficult not to achieve them’ – as it happened

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Prime minister urges public to judge him on whether he delivers on new pledges but Labour says most ‘were happening anyway’. This blog is now closed

Lucy Powell, the shadow culture secretary, has issued a statement welcoming the government’s proposal to abandon the privatisation of Channel (without actually putting it in those terms). She says the government should never have floated the plan in the first place, and that it has been a “total distraction” for the broadcaster. She says:

The Conservatives’ vendetta against Channel 4 was always wrong for Britain, growth in our creative economy, and a complete waste of everyone’s time.

Our broadcasting and creative industries lead the world, yet this government has hamstrung them for the last year with the total distraction of Channel 4 privatisation.

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Disabled people among hardest hit by cost of living crisis, finds study

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People with disabilities more likely to cut back on energy use and food, Resolution Foundation says

Disabled people in the UK are much more likely to struggle to heat their homes and cut back on food this winter, according to a report highlighting “massive” income gaps amid the cost of living squeeze.

Research from the Resolution Foundation found people with disabilities had an available amount to spend that was about 44% lower than that of other working-age adults, exposing them hugely to the rising cost of essentials.

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Strikes, elections and Dominic Raab: Rishi Sunak’s headaches to come in 2023

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PM has reinstated ‘boring government’ but smooth relations with backbenchers are unlikely to last

At the end of one of the most tumultuous years of politics in decades, Rishi Sunak is confident he has successfully managed to calm Tory MPs and – in the words of one senior aide – “bring back boring government”.

He has sought to kick some controversial pieces of legislation into the long grass, performed quick U-turns and managed to satiate a parliamentary party with a seemingly unquenchable thirst for regicide.

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Almost 50 UK shops closed for good every day in 2022, says report

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Centre for Retail Research says 17,145 stores shut in total, up almost 50% on 2021, during pandemic

Last year was a “brutal” one for Britain’s retail sector, with more shops shutting down than at any other point in the last five years, and 2023 will be similarly challenging, according to industry groups.

About 47 shops on average pulled down their shutters for the final time every day last year, according to analysis from the Centre for Retail Research (CRR). It found a total of 17,145 shops on high streets and in other locations closed for good over 2022. This is up almost 50% on the 11,449 shops closed in 2021, during the Covid pandemic.

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Rail strikes ‘cost UK hospitality sector £1.5bn in December alone’

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Figure worse than predicted and head of industry body expects ‘more business failures’ in early 2023

The rail strikes have had a worse impact on the UK’s hospitality industry than expected – costing bars, pubs, restaurants and hotels £1.5bn in December alone – according to the head of the body representing the sector.

Kate Nicholls, the chief executive of UKHospitality, said this had contributed to a “perfect storm” for businesses battling high energy bills and a cost of living crisis, adding this meant “undoubtedly we will see more business failures” in the next three months.

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ExxonMobil launches legal challenge to EU’s windfall tax on energy firms

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US oil firm contests legal authority for ‘solidarity contribution’ to raise funds to offset soaring energy prices

ExxonMobil has launched a legal challenge against the EU in an attempt to derail the bloc’s windfall tax on the profits of energy producers.

In a high-stakes political battle as countries across Europe and the wider western world struggle with soaring energy costs and sky-high inflation, the US oil firm said it believed the EU had overreached its powers with the windfall tax.

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Bank branches ‘still vital’ as squeezed UK households seek cash and advice

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Quarter of consumers more likely to visit branches amid struggles with surging energy, food and housing costs, finds KPMG survey

Cost of living pressures have increased the number of customers relying on bank branches to help manage their squeezed budgets, research shows.

While the Covid-19 pandemic accelerated the adoption of online-only banking, particularly during lockdowns, research from the accountancy firm KPMG showed a quarter of UK consumers were more likely to visit bank branches now that households were grappling with surging energy, food and housing costs.

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Labour reaffirms pledge to fight structural racism amid disparity figures

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Exclusive: ONS analysis shows black households five times more likely to struggle to pay energy bills

Labour has reaffirmed its commitment to tackle structural racism after new analysis showed black households are five times more likely to struggle making energy bills repayments.

Black and minority ethnic people were already 2.5 times more likely to be in relative poverty, and 2.2 times more likely to live in deep poverty (defined as having an income more than 50% below the relative poverty line), than their white counterparts regardless of the energy crisis, figures from the Office for National Statistics show.

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UK retailers face quieter Boxing Day amid cost of living crisis

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An estimated £3.8bn will be spent on 26 December, down almost 4% on last year

Retailers are preparing for a quieter Boxing Day this year despite freedom from pandemic restrictions as the cost of living crisis weighs on shoppers’ budgets.

Spending is expected to hit almost £3.8bn on 26 December, according to research by GlobalData for Vouchercodes.

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Royal Mail urges people to use or swap non-barcoded stamps

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Deadline is 31 January, although there will then be six-month grace period with such post still delivered

Do you have a book of stamps in your wallet, purse or drawer at home? Maybe you have stockpiled them to avoid future price rises.

If so, you need to be aware that the official deadline for using up stamps without barcodes – notably the regular first and second-class “everyday” stamps featuring the profile of the late Queen – is getting closer.

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UK workers face return to 2006 real-term wages in ‘highly challenging’ 2023

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PwC predicts increase in divorces, slide in house prices and drop in happiness index

British wages next year will fall back to 2006 levels, while 2023 will also bring a slide in house prices and an increase in divorces, according to a forecast that finds the UK is on course to be a less happy place to live.

The consultancy firm PwC said a look ahead to 2023 showed there were few positive indicators, with most measures of the UK’s economic and social performance going into reverse.

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Warning over spate of UK house fires as residents try to cut energy bills

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Take care using candles and electric heaters, fire authorities warn, as Ofgem reveals gas and electricity bills are up by 86%

Fire authorities have urged householders to take care when using candles, wood burners and electric heaters to cut energy bills this Christmas after a spate of recent house fires.

Flat fires in Uxbridge and Harwich this month were caused by candles; fire chiefs in Cumbria, Hereford and Worcester reported more fires as householders used unswept chimneys and candles; and last month in Wakefield a blaze was caused by a tumble dryer being used overnight to save money.

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UK retailers expect subdued build-up to Christmas amid icy weather and strikes

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Footfall likely to increase less than in previous years as shoppers struggle with cost of living crisis, say analysts

The UK retail industry is braced for a muted end to the Christmas shopping period as poor weather and strikes weigh further on consumers whose spending is already under pressure from the increased cost of living.

Analysts at the data company Springboard said they expected the number of shoppers at retail destinations across the UK to rise by 4.5% in high streets, 5% in retail parks and 10% in shopping centres in December compared with November. However, those footfall increases would be smaller than previous years.

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How will the NHS strikes affect you?

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Ambulance workers and nurses are taking action in England, Wales and Northern Ireland. Here’s what to expect

• Nurses pledge tougher strikes

Nurses will hold their second day of strike action on Tuesday in more than 70 trusts and health organisations in England, Wales and northern Ireland. On Wednesday, three unions, the GMB, Unison and Unite, will take strike action at ambulance trusts across the country. More than 10,000 ambulance workers in the GMB have voted to strike at nine trusts in England and Wales.

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UK high street faces post-Christmas ‘flurry of failure’

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Lacklustre festive sales leaving retailers low on funds needed to cope when shoppers traditionally tighten belts in new year

The high street could face a “flurry of business failures” in the new year, as a lacklustre Christmas sales period is leaving retailers low on the funds needed to cope when households tighten their belts after the festive season.

“We can expect more consolidation and high street casualties as we head into the new year. It will be yet another tough year for retail and a case of survival of the fittest,” said Paul Martin, UK head of retail at KPMG.

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