The Office for National Statistics (ONS) has confirmed today that UK inflation has risen to 9% amid the growing cost of living crisis.
This is the highest it has been for 40 years.
The data released by the ONS today showed prices hiked across a broad range of everyday goods and services during April, but almost three-quarters of this inflation rise was said to be accounted for by the unprecedented 54% increase in the energy price cap – which kicked in at the start of the month.
Millions of people across the UK saw an unprecedented £693-a-year rise in energy costs last month when the a higher energy price cap was introduced.
The energy price cap – which is the mechanism that outlines the maximum amount that companies can charge to provide energy – has been credited with protecting around 22 million UK households from the worst of the price hikes after COVID-19 restrictions were eased and the war in Ukraine pushed up wholesale gas prices.
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The cap also prevented companies from passing on unprecedented increases to their customers.
But the average bill rose by 54%, or £693 annually, from April to £1,971, and the latest forecasts suggest bills could rise to almost £2,600 in October when the next price cap adjustment is due.
Record high prices for both petrol and diesel were other major factors in the inflation rise.
Speaking on the price hikes, Grant Fitzner – Chief Economist at the ONS – said: “Inflation rose steeply in April, driven by the sharp climb in electricity and gas prices as the higher price cap came into effect.
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“Around three-quarters of the increase in the annual rate this month came from utility bills… [and] steep annual rises in the cost of metals, chemicals and crude oil also continued, along with higher prices for goods leaving factory gates,” he added.
“This was driven by increases for food products, transport equipment and metals, machinery and equipment.”
The Bank of England has also released updated forecasts earlier this month that suggest inflation will top 10% later this year.
Chancellor Rishi Sunak says the government “stands ready to take further action” in response to the rise in inflation, explaining in a statement today: “Countries around the world are dealing with rising inflation [and] today’s inflation numbers are driven by the energy price cap rise in April, which in turn is driven by higher global energy prices.
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“We cannot protect people completely from these global challenges, but are providing significant support where we can.
Government aims to ‘turn the tide’ on homelessness with £1 billion funding boost
Emily Sergeant
Nearly £1 billion of funding is being pumped into Council budgets to help “break the cycle of spiralling homelessness” in 2025.
As part of the Government‘s wider ‘Plan For Change’, and in a bid to help tackle, reduce, and prevent homelessness next year, it’s been announced that more resources will be be made available for workers on the frontline who provide essential services to get rough sleepers off the street and into secure housing.
This significant investment means Councils will now be “better equipped” to step in early and stop households from becoming homeless in the first place.
According to the Government’s plans, these funded measures will include mediation with landlords or families to prevent evictions, helping homeless people find new homes, and providing deposits to access private renting.
This government is determined to tackle, reduce and prevent homelessness.
— Ministry of Housing, Communities & Local Gov (@mhclg) December 18, 2024
The funding will also be used to address the growing use of B&Bs and nightly-let accommodation, and the streamlining of funding structures to make it easier for Councils to spend their cash.
Areas across the UK can also choose to channel resources into services such as Housing First.
Housing First has been massively successful in Greater Manchester, and has helped house hundreds of our region’s rough sleepers since it was first piloted, being described as “life-changing” along the way.
More than £633 million of the funding will be allocated for the Homelessness Prevention Grant – which is a £192 million increase from this year – while £185.6 million will go to the Rough Sleeping Prevention and Recovery Grant, more than £37 million to the Rough Sleeping Accommodation Programme, and £5 million will be for the Emergency Accommodation Reduction Pilots.
This new £1 billion funding boost comes after it was announced back in September that Section 21 ‘no fault’ evictions will be abolished in England next year as part of the landmark Renters’ Rights Bill.
It will also look to support the Government’s ambition to deliver the biggest increase in social and affordable housing in a generation – with an extra £500 million ploughed into the Affordable Homes Programme to build tens of thousands of affordable homes across the country.
Featured Image – Gary Knight (via Flickr)
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Avanti West Coast staff set to strike on major days over festive period
Emily Sergeant
Avanti West Coast staff are set to strike on some major days over the festive period, it has been announced.
Train managers who are members of the RMT Union will stage industrial action on New Year’s Eve and 2 January 2025 after “overwhelmingly rejecting” the train company’s “inadequate proposals” on rest day working arrangements.
On top of this, strikes will also go ahead on Sundays between 12 January and 25 May too.
According to the union, up to 400 members are involved in the dispute with Avanti, and 83% of those voted against a suggested deal.
Strikes were previously planned for 22, 23, and 29 December as well, but they were suspended last week after a suggested agreement was put to a referendum of RMT members.
“Our members have resoundingly rejected Avanti’s latest offers in two referendums,” explained an RMT spokesperson. “Sustained strike action is now the only way to focus management’s minds on reaching a negotiated settlement with the union.”
In case you weren’t familiar, Avanti’s West Coast Main Line operates six routes along the west of the UK, including from London Euston to Manchester Piccadilly, as well as services from London to other major cities such as to Blackpool, Glasgow, Edinburgh, Birmingham, Holyhead, Wrexham, and Liverpool.
Avanti has warned its customers that the strikes will likely cause “significant disruption” on the West Coast Main Line.
The train operator took to X to assure that its plans will be confirmed “as soon as possible”.
The RMT union has announced strike action affecting Avanti West Coast on 31 December and 2 January, along with all Sundays from 12 January to 25 May 2025. We’re looking at how this industrial action will impact our services and we’ll confirm our plans as soon as possible.
“The RMT union has announced strike action affecting Avanti West Coast on 31 December and 2 January, along with all Sundays from 12 January to 25 May 2025,” the statement reads on X.
“We’re looking at how this industrial action will impact our services and we’ll confirm our plans as soon as possible.”
An Avanti West Coast spokesperson also added in response to the industrial action being called yesterday: “We’re disappointed our train managers who are RMT members have voted to decline the very reasonable, revised offer made to them to resolve the rest day working dispute and avoid inconveniencing our customers.