UK Households Struggle As Inflation Hits 30-Year High, New Taxes Kick In
Millions of Britons who previously found themselves financially ‘comfortable’ are feeling the heat over accelerating inflation, record energy bills, and tax increases which kick in this year.
According to the Bank of England, scorching inflation will result in the largest drop in disposable income in 30 years when adjusted for inflation.
In April, UK energy bills are due to jump 54% to around 2,000 pounds ($2,723) a year per household. While some of it will be offset by emergency government support – and social security will also increase, it will be against the backdrop of rising interest rates according to Reuters.
“There’s just too much going up at once,” said 38-yaer-old care worker Nicola Frape, who huddles under blankets with her 14-year-old daughter to conserve heat, and have limited roadtrips due to the price of gas. “The pressure is just going to be even worse in April,” she added.
With economies around the world rebounding from coronavirus lockdowns, prices for everything from food and clothes to haircuts and rent, as well as energy are going up, fuelled by resurgent demand and shortages due to supply chain disruptions.
Accurate national comparisons of changes in living standards are hard to make but concerns about inflation are emerging as a big factor in elections including France’s presidential race in April and U.S. midterm elections in November. -Reuters
A February survey found that the number of people experiencing food insecurity was 20% higher in January than the previous six months, according to FT.
The decline in living standards for much of the UK population prompted chancellor Rishi Sunak last week to announce a £9bn package to help struggling households.
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