Britons face biggest drop in living standards since records began


UK Times: “Households will experience the biggest fall in their living standards since records began as they face soaring inflation, tax increases and rising energy bills.” 
“In a bleak assessment of the year ahead, the Bank of England warned people that take-home pay would fall by five times the amount it did during the financial crisis of 2008. It will be the worst hit to real incomes since comparable records began in 1990.”

By: Admin – Climate DepotFebruary 4, 2022 9:01 AM with 0 comments

https://www.thetimes.co.uk/article/britons-facing-biggest-drop-in-living-standards-ttw2rnnf5?mc_cid=ad1b90475b&mc_eid=0b1369f9f8
Britons face biggest drop in living standards since records beganThe Times, February 4, 2022
Households will experience the biggest fall in their living standards since records began as they face soaring inflation, tax increases and rising energy bills.

In a bleak assessment of the year ahead, the Bank of England warned people that take-home pay would fall by five times the amount it did during the financial crisis of 2008. It will be the worst hit to real incomes since comparable records began in 1990.
Ofgem, the energy regulator, announced yesterday that the price cap on energy bills for 22 million households would rise by 54 per cent from April. For most households the increase will be £693 to £1,971 a year, whereas the costs for 4.5 million with prepayment meters will rise by £708 to £2,017 on average.
The chancellor responded with a £9 billion package of loans and council tax rebates to take the “sting” out of the price increase but admitted that bills would rise by £350 for most households this April. He said that Britain would have to get used to higher energy prices in the long term.
The Bank of England confirmed that interest rates would rise from 0.25 per cent to 0.5 per cent, which will lead to higher mortgage rates. Some on the monetary policy committee, the body that sets interest rates, pushed for an increase to 0.75 per cent. The Bank also warned that the combination of higher energy prices and the rising cost of goods would lead to a 2 per cent drop in households’ net incomes after inflation.
Conservative MPs criticised Sunak over plans to increase national insurance contributions in April by 1.25 percentage points both for employers and employees, with one branding him a socialist. The chancellor said that the government could not keep energy bills “artificially low” in the face of soaring wholesale gas prices, adding that to do so would be “dishonest”.
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