Rates and the Economy news: page 5
- March 2023
Budget sets out OBR forecast of falling living standards
The Office for Budget Responsibility's Budget forecast shows living standards falling this year and next and not returning to pre-pandemic levels until the back end of the decade, with mortgagors facing the largest income falls.
UK food price inflation peaks at 19.2%
Scottish Government analysis puts annual food price inflation at 19.2 per cent in March 2023, the highest rate of increase in food prices since 1977, as overall UK inflation eased to 10.1 per cent.
Low Pay Commission opens consultation on 2024 minimum wage rates
The Low Pay Commission is consulting on minimum wage rates for April 2024 and beyond, running from 23 March to 9 June 2023, with recommendations to the Government due in October.
NIESR underlying inflation hits series high
The National Institute of Economic and Social Research said its trimmed-mean measure of underlying UK inflation rose to a series high of 9.9 per cent in March 2023, as food inflation reached a 45-year high.
- February 2023
Tenth JRF report finds 29.1% of UK individuals below MIS in 2020-21
The Joseph Rowntree Foundation's tenth Minimum Income Standard report estimates 19.2 million people, including 5.7 million children, lived in households below the benchmark in 2020-21.
Bank bosses questioned by Treasury Committee over passing on base rate rises
High street bank bosses were questioned by the Treasury Committee in February 2023 over why Bank of England base rate rises had not been passed on to savers.
- January 2023
ONS release published on how changes in housing costs are impacting households
The Office for National Statistics published an analysis on 9 January 2023 examining how rising mortgage rates and rents are affecting UK households, including those whose fixed deals are due for renewal.
- December 2022
NIESR projects peak Bank Rate effects on mortgage holders
The National Institute of Economic and Social Research projects that nearly four million UK households will face higher monthly mortgage repayments, typically around £400 more, once Bank Rate peaks.
- November 2022
Autumn Statement 2022 delivered by Jeremy Hunt
Jeremy Hunt's Autumn Statement of 17 November 2022 raised taxes, cut energy bill support from April and uprated benefits by 10.1 per cent, with the Resolution Foundation warning of a 7.1 per cent fall in household incomes.
Autumn Statement sets benefits uprating at 10.1% and raises benefit cap
The Autumn Statement uprated most benefits by September's 10.1% CPI from April 2023, raised the benefit cap for the first time since 2016 and extended cost of living payments and energy support.
Energy Price Guarantee to become less generous from April 2023
The Energy Price Guarantee will be scaled back from April 2023, with a typical household bill rising to £3,000, the Resolution Foundation says in its analysis of Jeremy Hunt's Autumn Statement.
Autumn Statement freezes income tax thresholds and lowers top rate threshold
The November 2022 Autumn Statement froze personal income tax thresholds, lowered the top rate threshold, announced a means tested £900 cost-of-living payment and committed to the pensions triple lock.
Chancellor announced cost of living support package
Jeremy Hunt's 2022 Autumn Statement introduced a package of cost of living support, including three payments worth £900 for means-tested benefit claimants and extra help for pensioners and disabled people.
NIESR responds to the 2022 Autumn Statement
The National Institute of Economic and Social Research said the Chancellor should have given households more support, criticising £60 billion of fiscal tightening and a universal energy subsidy.
OBR forecasts record fall in living standards for 2022-23
The Office for Budget Responsibility forecasts real household disposable income per person will fall 4.3 per cent in 2022-23, the largest drop since records began in 1956-57, followed by a 2.8 per cent fall in 2023-24.
Revised Energy Price Guarantee set at £3,000 from April 2023
The Energy Price Guarantee will expire in April 2023 and be replaced by a revised guarantee set at £3,000 for the average household, running until April 2024.
- October 2022
Chancellor statement sets end date for energy support schemes
The Energy Price Guarantee, the Energy Bills Support Scheme and the Energy Bill Relief Scheme are due to end in their current form on 31 March 2023, Consumer Scotland has said after the Chancellor's statement.
JRF analysis shows constituencies affected by possible benefit uprating cut
The Joseph Rowntree Foundation has published constituency analysis showing which areas would be most affected if the Government does not uprate means tested benefits such as Universal Credit in line with inflation.
Energy Price Guarantee to end in April 2023, 18 months earlier than planned
The Chancellor has said the Energy Price Guarantee will end in April 2023, 18 months earlier than planned, a move the Resolution Foundation says could save the Treasury up to £40 billion next year.
Energy Price Guarantee introduced capping typical bills at £2,500 a year
The Energy Price Guarantee took effect on 1 October 2022, capping typical household energy consumption at £2,500 a year after the then Prime Minister announced it on 8 September 2022.
Further price cap rise to around £2,500 expected in October 2022
The Resolution Foundation says commodity market prices point to the October 2022 energy price cap reaching around £2,500, which would put 7.5 million English families in fuel stress.
Government considering uprating some working-age benefits by earnings rather than inflation for April 2023
The Resolution Foundation reports the Government is considering raising some working-age benefits by average earnings of 5.5 per cent rather than September CPI inflation of around 10.1 per cent next April.
Government energy bills support scheme launched at the beginning of October 2022
The government energy bills support scheme began in October 2022, and StepChange recorded a 34% rise in visits to its page on government help with gas and electricity bills between September and October.
NIESR underlying inflation measure hits new series high
The National Institute of Economic and Social Research said its measure of underlying inflation, which strips out the largest and smallest price changes, reached a new series high of 8.8 per cent in October 2022.
- September 2022
Mini-budget triggers sharp fall in the pound
The pound fell sharply after Kwasi Kwarteng's mini-budget on 23 September 2022, with lenders pulling hundreds of mortgage deals and the Bank of England intervening to buy government bonds.
BEIS announces £100 alternative fuels payment and EBSS extension
The UK government set out further detail on the Energy Price Guarantee on 21 September 2022, including a £100 payment for some off-gas-grid households and an extension of the £400 Energy Bills Support Scheme discount.
Chancellor brings forward £45 billion package of tax cuts in first fiscal statement
The Chancellor has brought forward a £45 billion package of tax cuts, described as the biggest for 50 years, with gains concentrated among higher earners and in London and the South East.
Emergency Budget Review published
The Scottish Government published an emergency budget review in September 2022 after high inflation eroded the value of the Scottish Budget, with the Finance Minister estimating it was worth around £1.7 billion less than in December 2021.
Government announces Energy Price Guarantee intervention in the energy market
The government's Energy Price Guarantee, announced in late August 2022, will substantially reduce the inflation shock facing households this winter, though private renters still face sharply rising rents.
UK inflation reached 10.1%, the highest since 1982
UK inflation reached 10.1% in September 2022, the highest since 1982, a Scottish Government report said, setting out almost £3 billion of devolved cost of living measures.