Rishi Sunak’s Spring Statement, delivered to Parliament today, was notable for one thing only: its complete disregard for the hardship facing millions of households.
Inflation this week soared to 6.2% – a 30-year high. The Bank of England expects rising energy, fuel and food costs to drive it up to 8% within months. For low-income households, the scale of price increases could be much greater.
With around a fifth of UK adults having less than £100 in the bank, rising prices are set to push millions of households into financial hardship. The debt charity StepChange estimates that if energy bills hit £3,000 per year – which the industry says could happen before 2022 is up – the most financially vulnerable households will be spending £1 in every £6 they earn on energy. Campaigners estimate that more than a quarter of homes in England – more than 15 million people – will be in fuel poverty from next month.
