The UK is facing the worst economic crisis in 40 years. British inflation, driven by food prices, reached a new high in September at 10.1% year-on-year. Amid skyrocketing costs, half of UK households are cutting back on the number of their meals, according to results from Which? carried out with nearly 3,000 people and published on Thursday.
A similar proportion say that they find it difficult to eat healthy compared to before the crisis, and opt for prepared meals to reduce the use of gas or electricity. Eighty percent of those surveyed say they are struggling financially. Many are now depriving themselves of all the delights to buy only the essentials.
Another consequence feared in the daily life of the British. Millions of households are also at risk of finding themselves in energy poverty and therefore unable to heat themselves adequately this winter, the British consumer protection association has warned.
The new Chancellor of the Exchequer, Jeremy Hunt, appointed urgently last Friday, has considerably shortened the duration of the cap on energy bills, undoing much of the budgetary measures announced at the end of September by his predecessor Kwasi Kwarteng. Jeremy Hunt thus reduced energy support to households to six months from two years earlier, while gas prices have skyrocketed for a year, especially since Russia’s invasion of Ukraine.
Two decades of “lost standard of living”
In addition to the economic crisis that the country is going through, there is a political crisis. The general secretary of the TUC union federation said on Tuesday that the UK was “ left behind by two decades lost standard of living “.” We are going through the longest period of falling real wages since the Napoleonic era. and, under successive Conservative governments since 2010, the poor got poorer but the rich got richer TUC leader Frances O’Grady said in a speech at the opening of the TUC annual conference in Brighton on Tuesday.
The TUC says it expects real wages, that is, adjusted for inflation, to return only in 2028 to their 2008 level, before the financial crisis. ” It’s not hedge fund managers who win gold by betting on the collapse of the pound ” who “ create real wealth in this country “, but not ” honest people who work hard Mrs. O’Grady warns again.
The level of price increases, which pushes difficult decisions on the indexation of social benefits, civil servants’ salaries or pensions, further complicates the task of Prime Minister Liz Truss, now constrained by rigor. The latter fights for his political survival after a budget plan presented on September 23 that set the financial markets on fire and forced him to take a drastic and humiliating turn. This budget proposal that combined total tax cuts and massive support for energy bills, which was to be financed solely by debt in the midst of rising rates, was a fiasco.
Furthermore, the Bank of England, already in the midst of a cycle of interest rate adjustments to try to bring inflation back to its 2% target, has suggested that it should adjust its rates by the same amount during its next meeting on 3 november. This should further weigh on the British economy, which is already on the verge of recession.
#households #skip #meal #due #inflation