Decision makers yesterday hiked the Bank’s base interest rate to 1.75 per cent from 1.25 per cent, the biggest single rise since 1995.
And Consumer Prices Index inflation is expected to peak at 13.3 per cent in October, the highest level since September 1980, the Bank said.
Meanwhile, energy customers are likely to see significant bill increases every three months rather than half-yearly as Ofgem warns we face a “very challenging winter ahead”.
The regulator said the change will provide some stability for the market following Russia’s actions in Ukraine, leading to ongoing volatility, adding it is “not in anyone’s interests for more suppliers to fail and exit the market”.
Bleakly, the Business, Energy and Industrial Strategy Committee chairman Darren Jones said that he does not expect bills come down until “the end of 2024 or 2025”.
It is a barometer for how hard families are already feeling the pinch that people have been urged to avoid taking part in ‘mass non-payment’ of energy bills. Money saving expert Martin
Lewis had previously warned that civil disobedience could occur as people desperately seek ways to make ends meet.
The country is crying out for a solution – or even some reassurance – but Ministers are offering very little.
Parliament may be in summer recess but it is not fair that the Conservative leadership contest continues to take all of the party’s focus. For too many, the cost of living crisis is a life or death scenario.