Rates and the Economy news: page 6
- September 2022
Liz Truss announces Energy Price Guarantee capping typical household energy bills at £2,500 for two years
Liz Truss announced an Energy Price Guarantee on her second full day as prime minister, capping typical household energy bills at £2,500 for two years.
September 2022 fiscal event drove market reactions and a spike in mortgage rates
The September 2022 fiscal event pushed consumer confidence to its lowest recorded level and spiked mortgage rates, before most of the announced measures were rapidly unwound.
- August 2022
JRF estimates total cost of living increase of £2,550 between 2021/22 and 2022/23
The Joseph Rowntree Foundation estimates household costs will rise by £2,550 between 2021/22 and 2022/23, with energy accounting for £1,550 of that total and non-energy costs £1,000.
- May 2022
Visits to Government energy bill help page rose 54% between April and May 2022
StepChange reports visits to its page on Government help with energy bills rose 54 per cent between April and May 2022, which it suggests may be an early sign of the energy price cap rise.
- April 2022
State Pension uprated by 3.1% under suspended triple lock
The State Pension rose by 3.1% on 6 April 2022 after the earnings element of the triple lock was suspended for a year, giving pensioners an annual boost of up to £289.
Benefits uprated by 3.1% while inflation stood at 9%
Most working-age benefits and the State Pension rose by 3.1 per cent in April 2022, based on September 2021 inflation, while the cost of living was already rising far faster.
CPI inflation reaches 40-year high
UK consumer price inflation reached 9% in April 2022, a 40-year high driven by energy bills and food prices, according to a Scottish Parliament committee report published in July 2022.
UK Government announced energy support package for almost all GB households
The UK government announced a support package in April 2022 for almost all households in Great Britain, including the £400 Energy Bills Support Scheme and a guarantee capping the unit price for a typical bill.
National Insurance rates rise and Income Tax thresholds frozen
National Insurance rates rose and Income Tax thresholds were frozen in April 2022, with the Resolution Foundation saying higher inflation makes the threshold freeze a bigger tax rise than planned.
National Minimum Wage and National Living Wage rates rise
The National Living Wage rose to £9.50 an hour on 1 April 2022, with new statutory minimum rates for all age groups and apprentices, benefiting around 2.5 million UK workers.
- March 2022
NIESR publishes February 2022 inflation analysis showing underlying inflation above 5 per cent
NIESR reports UK headline consumer price inflation of 6.2 per cent for February 2022 and underlying inflation of 5.1 per cent, and forecasts inflation will average 7 per cent over 2022.
Report projects worst parliament on record for income growth
The Resolution Foundation projects that 2019-20 to 2024-25 will be the worst parliament on record for income growth, with the median falling 2 per cent as inflation outpaces pay and benefits.
Chancellor announces £3,000 increase in NICs threshold in Spring Statement
The Chancellor raised the National Insurance threshold by £3,000 to £12,570 in the Spring Statement, a change worth £330 to most workers but far less to those on means-tested benefits.
UK headline CPI inflation rises to 7.0 per cent
UK headline consumer price inflation rose to 7.0 per cent in March 2022 from 6.2 per cent in February, the National Institute of Economic and Social Research said.
OBR forecasts largest fall in living standards since records began for 2022-23
The Office for Budget Responsibility forecasts real household disposable income per person will fall 2.2 per cent in 2022-23, the largest drop in any single financial year since ONS records began in 1956-57.
Spring Statement announces £17.6 billion of household support
The Office for Budget Responsibility said the Spring Statement's £17.6 billion of household support would not prevent the largest fall in living standards in any single financial year since records began in 1956-57.
- February 2022
Russia launches full-scale invasion of Ukraine, energy prices spike
Russia's full-scale invasion of Ukraine on 24 February 2022 pushed already rising wholesale gas and electricity prices to record highs, setting up the largest domestic energy bill increases in Great Britain since the energy crisis began.
Ofgem energy price cap announcement means bills likely to rise
Ofgem's energy price cap announcement means household electricity and heating bills are likely to rise by an average of £693 a year, prompting a package of support measures from the Chancellor.
Committee takes evidence on the cost of living crisis
The Work and Pensions Committee first took evidence on the cost of living crisis in February 2022, when inflation was forecast to peak at 7.25% in April 2022, and published its findings that July.
Invasion of Ukraine caused energy prices and inflation to skyrocket
Russia's invasion of Ukraine in February 2022 pushed up oil and gas prices, drove UK inflation to double digits and triggered a wave of government support for household energy bills.