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Inflation rises to highest level in 30 years due to soaring energy, fuel and food costs
Rishi Sunak is expected to address the crisis in his spring statement this afternoon
UK inflation has risen to its highest level in almost thirty years.
Prices rose by 6.2% in the twelve months to February – the fastest rate for three decades – as fuel, energy and food costs continued to hit their highest rates in a generation.
Prices have been rising at their fastest rate since the 1990s since December last year, with inflation expected to accelerate once again in April when the energy price cap is lifted.
The average household energy bill will rise by £693 a year in England, Scotland and Wales, while a planned rise in National Insurance will also put pressure on household budgets.
Rishi Sunak is under mounting pressure to find a solution for the soaring cost of living families are facing across the country, and will address the crisis during his spring statement announcement this afternoon.
The Chancellor, who has ‘vowed to stand by British families’ throughout the cost of living crisis, is expected to ease the burden on the taxpayer by cutting fuel duty and raising the income threshold at which people begin to pay national insurance.
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A number of countries across Europe have already cut taxes on petrol, and it seems increasingly likely that this will be one of Sunak’s first announcement.
As for the issue of rising energy bills, it is estimated that the chancellor will refrain from announcing any further support this week.
Number 10 / Flickr
According to Sky News, Sunak will instead present another package for August, which is when Ofgem is due to announce the next increase in the price cap, expected to kick in in October.
MoneySavingExpert founder Martin Lewis has previously urged the government to ‘act now’, warning that millions of households will have to choose between ‘freezing or starving’ as a result of the soaring costs.
Some of Martin Lewis’s tips on saving money include:
- Consider getting a fixed tariff that is no more than 40% above the price cap
- Improve insulation in your home
- Turn the thermostat and radiators down
- Think about budgeting everyday costs
- Use your smart meter and take regular meter readings
- Speak to your energy provider now if you are struggling to pay your bills