By Kevin Peachey Published 4 days ago comments Comments Share close Share page Copy link About sharing Interest rates have been raised for the sixth time in a row from 1.25% to 1.75%. The Bank of England's decision to increase rates by half a percentage point makes it the largest increase for 27 years. The move is an attempt to slow the rate at which prices are rising. The Bank has warned that inflation could pass 13% later this year. The last time interest rates were this high was during the global financial crisis in December 2008. Why does raising interest rates help lower inflation? Prices are going up quickly worldwide, as Covid restrictions have been eased and consumers spend more. Many firms have problems getting enough goods to sell. And with more buyers chasing too few goods, prices have risen. There has also been a very sharp rise … [Read more...] about UK interest rates: How does a rise affect me?
Gas price rises
What is the UK inflation rate and why is the cost of living rising?
Published 20 July comments Comments Share close Share page Copy link About sharing Prices are rising faster than they have done for 40 years. The increase in the cost of living is putting a squeeze on people's finances, as incomes fail to keep up. What is inflation? Inflation is the increase in the price of something over time. For example, if a bottle of milk costs £1 and that rises by 5p compared with a year earlier, then milk inflation is 5%. Every month a figure is released, estimating how much prices are rising overall - it's currently at 9.4% . Why are prices rising so fast? Many things are contributing to the high rate of inflation, including: Energy bills , which have risen rapidly because of high oil and gas prices. They're expected to increase sharply again from October Petrol and diesel prices , partly because the war … [Read more...] about What is the UK inflation rate and why is the cost of living rising?
Cost of living crisis: How rising prices are affecting people in Scotland
By Connor Gillies Published 24 July Share close Share page Copy link About sharing With holiday season in full swing, BBC Scotland's consumer affairs correspondent Connor Gillies has taken a trip of his own. He wanted to find out how people across the country are coping with the rising price of energy, food and fuel. In four locations over four days, the phrase "cost of living" was greeted with a dreadfully familiar sigh from everyone we met. From Millport on the Isle of Cumbrae, to the Kelpies in Falkirk, Pitlochry and Fort William, our journey showed that every community in Scotland has a unique experience of this crisis. The Barclay family I met Ayrshire couple Gordon and Seonaid Barclay at a caravan park in Pitlochry. They described the current price rises and the impact it is having on their lives as "horrible". Seonaid said: "I shop around now and look for … [Read more...] about Cost of living crisis: How rising prices are affecting people in Scotland
Liberal Democrats call for scrapping of energy price cap rise
Published 2 hours ago Share close Share page Copy link About sharing The Lib Dems have called for October's expected energy price cap rise to be scrapped, with the cost covered by a windfall tax on energy company profits. Experts expect the energy price cap - the maximum amount suppliers can charge their customers in England, Scotland and Wales - to hit £3,615. The average bill was £1,400 a year in October 2021. All households in England, Scotland and Wales will receive £400 to help pay rising fuel bills this autumn. The scheme is part funded by a windfall tax which has added a 25% surcharge on the profits of the oil and gas sector since the end of May. Responding to the Liberal Democrat's proposal, a UK government spokesperson said: "We know the pressures people are facing with rising costs, which is why we are providing £37 billion of help for households." Could … [Read more...] about Liberal Democrats call for scrapping of energy price cap rise
Cost of living: Over a third cut back on essentials
By Esyllt Carr Published 2 days ago Share close Share page Copy link About sharing More than a third of people across England, Wales and Scotland are cutting back on food and essentials in order to help with the cost of living, a new survey has shown. The research, carried out by the Office for National Statistics, found that figure was even higher for some groups. These included disabled people, those renting, and those with lower incomes. It comes as the UK is forecast to fall into recession this year, with the longest downturn since 2008 predicted. The latest figures from the ONS suggest 9 in 10 - or around 46 million people - have seen their cost of living go up in last month. The research, carried out between the end of March and June 19th, suggests that more than half are reducing how much gas and electricity they use at home, with that figure rising to nearly 6 in … [Read more...] about Cost of living: Over a third cut back on essentials
Why Europe is suffering a worse inflation crisis than Britain
If the longest recession since the financial crisis and deepest fall in living standards since the 1960s were not bad enough, Britain is also facing economic humiliation on the international stage – if you believe Government critics. Keir Starmer last month accused former chancellor Rishi Sunak and Prime Minister Boris Johnson of leaving the UK with an “appalling joint economic legacy of the highest inflation and the lowest growth in the G7”. The G7 comparison paints Britain’s painful 9.4pc annual price rise in June as a remarkable outlier, but that does not depict the full picture. Firstly, much of the G7 is in a very similar position: US inflation is at 9.1pc and Germany at 8.2pc. Secondly, the UK is suffering less inflation than the average EU nation – price rises averaged 9.6pc in June across the bloc. Figures on the continent range from 6.1pc in Malta – high by historic standards but unusually low today – to a scorching 22pc in Estonia, according to data from … [Read more...] about Why Europe is suffering a worse inflation crisis than Britain
Why Macron is easing safety rules to flood rivers with hot water from nuclear plants
France is allowing nuclear power plants to pump hot water into rivers in a bid to keep reactors running during the heatwave. State-owned nuclear power giant EDF will be allowed to discharge hot water from five plants after a temporary waiver to environmental rules was extended. France has one of the largest nuclear fleets in the world, with 56 nuclear power reactors supplying more than 70pc of its electricity. They operate under stringent safety and environmental rules, overseen by regulator ASN which carries out more than 1,800 inspections per year. Those rules include measures to protect nearby rivers from high water temperatures that would harm wildlife and plants. Many nuclear power plants use vast quantities of water to absorb waste heat produced by the plants and to cool down its equipment. They are often built next to rivers, lakes or the sea so they can draw up water, flush it through the plant, and send it back. Depending on the type of the reactor, … [Read more...] about Why Macron is easing safety rules to flood rivers with hot water from nuclear plants
How to ‘reduce your electricity bill’ with solar panels – ‘save hundreds!’
Energy bills: Cancelling direct debits is risky says expert SUBSCRIBE Invalid email We use your sign-up to provide content in ways you've consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info Solar panel suppliers have reported an increase in orders this year compared to last year due to more people wanting to install the green energy provider on the roofs of their properties. As the prices of electricity and gas continue to rise, it seems that Britons are finding alternative ways to heat their homes. Related articles ‘Works every time’: ’Homemade’ solution for getting rid of ants Pensioners asked to leave London homes to make way for young familes The time it would take to recoup the cost of installing solar panels from savings on energy bills is expected to get much shorter, according to … [Read more...] about How to ‘reduce your electricity bill’ with solar panels – ‘save hundreds!’
Boris Johnson will not intervene in cost of living crisis as that is ‘for future prime minister’
Downing Street has rejected calls for Boris Johnson to summon an emergency COBRA meeting to deal with the cost of living crisis. Gordon Brown, the former Labour prime minister, has called for Mr Johnson to meet with his two potential successors and thrash out a financial package of measures before energy bills soar in October. He said people will go cold and hungry this winter if urgent action isn't taken now, telling Sky News he was seeing poverty in his hometown in Fife " that I did not expect to see ever again in my lifetime ". Politics Hub: Brown slams 'vacuum' at heart of government A leading business group, the CBI, also urged Mr Johnson to "act now" as they set out four actions the government could take to ease the impact of the crisis. Advertisement But the prime minister's spokesman said that although the government recognises the challenges facing struggling households, "by convention it is not for this prime minister to make major … [Read more...] about Boris Johnson will not intervene in cost of living crisis as that is ‘for future prime minister’
Downing Street rules out immediate cost-of-living measures
Published 28 minutes ago comments Comments Share close Share page Copy link About sharing Related Topics Tory leadership No 10 has ruled out Boris Johnson introducing immediate measures to help people with rising energy costs. It comes as CBI director-general Tony Danker called for "all hands to the pump", echoing ex-Labour PM Gordon Brown's call for swift intervention in the cost-of-living crisis. And Nicola Sturgeon, Scotland's first minister, has called for an urgent meeting with the devolved governments. Downing Street said it recognised the public were facing "challenging times". However, Mr Johnson's spokesman argued it would be up to his successor to make any decisions on further help. Mr Johnson is due to leave office in early September, and No 10 said "by convention it is not for this prime minister to make major fiscal interventions during … [Read more...] about Downing Street rules out immediate cost-of-living measures