Most important points
- The new energy price cap is set at £2,074 from July
- What should you do now?
- Jeremy Hunt is not ruling out further energy support
- Bill payers warn they are not going to make it this winter
- Interest rate forecasts have risen sharply in recent days|Ed Conway explains why and what it means
- Who benefits from rising food prices?
- Your Dilemma:I pay my father's mortgage, how do I formally receive an allowance?
- Budget mother:Save for your children|Do food subscriptions save you money?|Holiday pay|The best broadband internet deals
- Jess Sharp and Katie Williams are live
What does the new high energy price mean for owners of electric cars?
As we report, a lowering of the upper limit of energy prices was announced today, which will take effect on July 1.
This means the average household in England, Wales and Scotland will see their bill fall by £426.
So what does this mean for owners of electric cars, which undoubtedly use a lot more electricity.
The £1,206 reduction from £3,280 to £2,074 will be positive news for EV drivers as it means anyone using the standard domestic electricity tariff will pay less than £20 to fully charge a typical family car at home.
Those with special electricity rates for electric vehicles and taking advantage of cheap off-peak prices will still enjoy an even better price.
However, for those who travel beyond their vehicle's range and rely on fast and ultra-fast chargers, the cost is much higher, RAC spokesman Rod Dennis said.
These toll points are subject to a VAT of 20% - which is 15% more than the VAT applied to household electricity.
It is important to remember that an energy price cap is not a maximum that a household will pay for its energy, but limits the amount that suppliers can charge them per unit of gas or electricity, so that those who use more energy will pay more.
Octopus Energy will bring back the session saver schedule this winter
Smart meter customers with Octopus Energy will save money this winter by reducing their electricity consumption again.
The company plans to bring back its savings program, which saw households exchange light bulbs for candles in the winter of 2022-2023. to save money on energy bills.
The initiative rewarded customers for every unit of energy saved during peak periods.
Octopus said the plan shifted 1.86 GWh (gigawatt hours) of energy demand over 13 sessions - the equivalent of stopping two million washing machines.
Nearly 700,000 smart meter users took part, with £5.3 million paid out to participants over the life of the scheme.
More than £170,000 of these profits were donated by customers to the Octopus family emergency fund, it said.
The news comes after regulator Ofgem announced a reduction in the energy price cap on household bills from July.
Octopus founder Greg Jackson said the move will ensure that falling global energy costs are passed on to consumers.
"However, costs are still twice as high as before the crisis," he added.
"We will do everything we can to help customers through this crisis and we hope that the government will continue to help those who need it most."
Warning of summer 'travel chaos' as Edinburgh Airport workers strike again over pay rise
Passengers could face a summer of "travel chaos" after Edinburgh Airport workers voted to strike over a pay dispute, a union warned.
Unite elected approximately 275 employees, including members working in security, terminal operations and search areas.
He said 85% supported union action against a 75% turnout and is now calling on airport bosses to offer an improved deal to avoid "travel chaos" over the summer.
Read more from ourScottish journalist Jenness Mitchellhere...
Soft drink factory workers strike for wages
Hundreds of workers at a soda factory go on strike over a wage dispute.
Unite members of the Coca-Cola Europacific Partners (CCEP) headquarters in Wakefield will go on strike from June 8.
Workers overwhelmingly voted in favor of union action over a wage offer that the union said was worth an average of 6%.
The strike was to last 14 days and would consist of three 48-hour strikes and two 96-hour strikes spread over a two-week period.
“Coca Cola Europacific Partners makes billions in profits, but it brings wage cuts for the workers who deserve them,” said Sharon Graham, Unite general secretary.
How the new top price of energy will affect our bills
Pressure on energy prices will ease from July, when we are expected to see a difference in the amount we pay to keep our homes running,zakencorrespondent Paul Kelsohe says.
Wholesale energy prices started to rise in late 2021, and the rise was exacerbated by the Russian invasion of Ukraine last February.
High energy costs have made fuel shortages "a common problem" and have "pushed millions of families into tight budgets," says Kelso, despite the government cushioning the impact with its energy support program over the winter.
But what happens in July?
Suppliers' cost to buy energy has fallen to its lowest level since 2021, Kelso explains, but this reduction won't be felt by customers until the summer as companies buy their supplies in advance.
And while prices have stabilized, bills are still more than twice what they were two years ago, he adds.
See Kels' full explanation of what today's energy price cap announcement means for our bills here...
Heathrow security guards organize new strike over wages
Security guards at Heathrow Airport started a three-day strike today over a pay dispute.
Unite members have already staged 15 days of union action, including during the busy Easter period.
Heathrow said it had contingency plans to keep the airport open and operating normally, adding passengers could expect a "smooth" half-term departure.
"Passengers need not worry about a strike from Unite during the six months," said Heathrow chief executive John Holland-Kaye.
"These strikes are not necessary at all. When I speak to colleagues, the overwhelming message is that they just want to vote for our wage proposal, but Unite won't allow that."
Unite said security officers at Heathrow were paid less than workers at other major airports in London and the South East.
Fuel prices have fallen this month - here's how much it will cost you at the pump
Fuel prices fell again after falling below 145 pence for the first time in 18 months last week.
The average price of a liter of unleaded is now 143.35p, down from 146.89p last month, according to RAC Fuel Watch.
This means that filling up a typical 55-litre family car now costs £78.84.
Diesel costs 154.31 pence a litre, down from 161.06 pence in April, meaning a car of the same size will cost you £84.87 for a full tank.
As prices continue to fall, RAC spokesman Rod Dennis says fuel prices "could bottom out in the coming weeks".
Saudi Arabia and other OPEC+ oil producers plan to cut oil production to about 1.16 million barrels per day, which Dennis says could push fuel prices "a little bit higher."
For diesel, he says it remains "vastly overpriced" across the country, despite wholesale prices being lower than those for unleaded.
Wholesale prices of the two fuels have been virtually identical in previous months, but petrol has crept up to at least 5 pence per litre.
Smaller lenders are pulling back mortgage deals over interest rate concerns
A spike in UK borrowing costs over the past 48 hours has forced smaller UK mortgage lenders to temporarily withdraw contracts and restructure offers for new customers.
UK wages rose sharply yesterday and today (to their highest level since last year's disastrous mini-budget) after inflation data showed that price increases did not ease as quickly as hoped - leading to predictions that interest rates will have to rise again.
Central banks raise interest rates so that people have less money to spend and more to save, which tends to suppress inflation.
As Ed Conway explained in our 6:43 am post, bank rates could peak at 5.5% this year - last week's forecast was 4.75%.
Now Reuters reports that at least seven small lenders have withdrawn products or announced price revisions this week.
These lenders are primarily focused on the buy-to-rent market - and none of them are major banks.
Car production rises for the third month in a row
Auto production rose for a third straight month as inventory shortages continued to ease, new data showed.
A total of 66,527 cars were produced in April, an increase of nearly 6,000 compared to the same month last year, the Society of Motor Manufacturers and Traders (SMMT) announced.
Exports drove production, rising 14.7% to 54,820 vehicles, and more than four out of five cars produced in this country went abroad.
The European Union remained the most important global market with 58% of total exports, followed by the US, China and Australia.
Hybrid electric (HEV), plug-in hybrid (PHEV) and battery electric vehicles (BEV) accounted for more than a third of total production.
Savings offers of the week
Geldfeitenvergelijken.nlexpert Rachel Springall released her savings deals of the week.
Chip - Instant access powered by ClearBank
"Chip this week raised the rate on its Instant Access product powered by ClearBank to 3.75%, improving its market position. Savers looking for a competitive rate on a flexible savings account may find this deal attractive because it offers unlimited recordings. should be aware that they must have a chip subscription (for which both free and paid options are available)."
Minimum amount to open: £1
Investec Bank plc – 1 year fixed rate depositor
"Now that the contract pays 5.00%, it has improved its position in its industry against competitors and could be an attractive choice for savers looking to tie up their money for a year for a guaranteed return."
Minimum initial amount: £5,000
UBL UK – 1 Year Fixed Rate Cash ISA
“Now paying 4.35% at maturity, this could be an attractive choice for savers if they have yet to use their ISA credits but are happy with their initial investment as no further allowances are allowed.”
Minimum initial amount: £2,000
Gatehouse Bank - Easy Access Cash ISA
Savers who want flexibility with their cash ISA may like Gatehouse Bank's latest rate hike. The contract now pays an expected return of 3.55% and improves its position among the highest rate tables in its industry. The account offers a monthly expected profit option, which could appeal to savers looking to increase their income."
Minimum amount to open: £1
NatWest - 2 year flat rate ISA number 323
“This week, NatWest raised the rate on its two-year fixed-rate ISA, which now pays 4.50%. The deal stands out in its industry compared to its peers and could attract savers who plan to use their tax-free rates ISA Savers who like to tie up their money until 2025 can make further additions up to a certain date, which may appeal to those who may have excess money to invest or transfer.”
Minimum amount to open: £1,000
What is the cost of living crisis in the UK? ›
The 'cost of living crisis' refers to the fall in 'real' disposable incomes (that is, adjusted for inflation and after taxes and benefits) that the UK has experienced since late 2021. The government has responded to the crisis with several packages of support throughout this and last year.Will the cost of living go down UK? ›
The Office for Budget Responsibility is warning of a big drop in living standards over the next two years. Once inflation is taken into account, household disposable income is set to fall by 5.7% between 2022 and 2024. That is the largest two-year fall since records began in the mid-1950s.Why is Britain facing a cost of living crisis? ›
This is caused in part by a rise in inflation in the UK, as well as the economic impact of ongoing issues such as the COVID-19 pandemic, Russia's invasion of Ukraine, and Brexit. While all in the UK are affected by rising prices, it most substantially affects low-income persons.Why is UK cost of living so high? ›
Pandemic-related supply shortages were a major factor. As the global economy recovered from its pandemic-related recession, there was increased demand for products and materials. The conflict in Ukraine also led to higher commodity prices (mainly in the first half of 2022), pushing up inflation around the world.Is it more expensive to live in England than the US? ›
The USA is the winner in terms of having lower overall costs compared to the UK.Is the US more affordable than the UK? ›
Key Takeaways. Overall, the cost of living in the U.K. is 0.49% lower than in the United States. Rent overall is about 22.55% lower in the U.K. You would need $4,700 per month to finance a modest lifestyle in London, compared to $5,822 for the equivalent lifestyle in New York City.Why is UK inflation so high? ›
Britain has struggled more than other countries with the surging cost of food, a shortage of workers to fill jobs and its heavy reliance on natural gas to generate power and domestic heating, all of which adds to inflation pressure.Is USA affected by cost of living crisis? ›
For instance, the inflation rate in the United States has hovered between 8 and 9 percent in the past months, signifying a rising cost of goods across the country. A rising cost of living causes pain even in wealthy countries.Is inflation worse in the UK than elsewhere? ›
"Inflation in the UK has risen further and stayed higher than elsewhere as the UK has experienced the worst of both worlds: a big energy shock like the euro zone and labour shortages - even worse than the U.S.," said Ruth Gregory, deputy chief UK economist at consultancy Capital Economics.Will food prices go down in 2023 UK? ›
Food retailers have said they expect prices to rise in 2023 overall but with the rate of inflation declining through the year and some products which have seen the sharpest rises falling in price.
Is food cheaper in America than UK? ›
Cost of Food
Generally speaking, the USA tends to be a little more expensive when it comes to grocery shopping. Bread, rice, and many fruits and vegetables are mostly less expensive in the UK. However, keep in mind that foods such as milk, chicken breasts, and eggs will cost you between 20-40% more in the UK.
- Durham, North East England. Durham is located in northeast England, south of Newcastle upon Tyne. ...
- Belfast, Capital of Northern Ireland. Belfast is the capital of Northern Ireland, and it was also where the RMS Titanic was built. ...
- Leicester. ...
- Stirling. ...
- Lancaster. ...
- Cardiff. ...
- Newcastle. ...
Tax rates are important for goods like alcohol, petrol and cigarettes with UK tax rates higher than European / US rates. However, although the UK is expensive in some areas, in other areas it is cheaper. e.g. US is much cheaper to eat out, but in US you have to pay private healthcare insurance.How do I prepare for cost of living crisis UK? ›
- Contact your university about hardship funds. ...
- Ask for a pay rise at your part-time job. ...
- Get a heated blanket for winter. ...
- Look into scholarships, grants and bursaries. ...
- Try ways to make money from home. ...
- See if your parents can offer any financial support.
Why are prices rising so fast? The soaring cost of food and energy have been key drivers of inflation. Oil and gas were in greater demand as life got back to normal after Covid. At the same time, the war in Ukraine meant less was available from Russia, putting further pressure on prices.What is the inflation rate in the UK? ›
The CPIH inflation rate is added for comparison. The core CPIH annual inflation rate was 6.2% in April 2023, up from 5.7% in March, which is the highest rate since February 1992. The CPIH all goods index rose by 10.0% in the 12 months to April 2023, down from 12.7% in March.How to fix the cost of living crisis UK? ›
The cost of living crisis is causing Britain's biggest fall in living standards in decades. The only way to change this: wage increases across the economy. This May Day, consider getting (or gifting) a subscription at a discounted price of $1 for a yearlong digital subscription, and $10 for print.What is the cost of living in the UK? ›
Updated on 21 May, 2023
The average cost of living as a family of four is around $3,135(£2,268) without house rent. As a single person or student, the estimated cost of living per month in the UK is $900(£651) without rent.
California is so expensive because of its strong economy, high-income tax rates, and limited housing supply which make it difficult for residents to save money. Moreover, the prices of basic necessities such as food, gasoline, and transportation are comparatively steep in California as compared to most other US states.Why is inflation worse in UK than Europe? ›
Rising energy prices hit UK households and businesses hard - harder than in other European countries. According to Reuters, Britain's high rate of energy inflation shows it's over-reliant on gas for heating homes. It also reflects the poor energy efficiency of its housing stock.
Is the UK inflation the worst? ›
Britain has the highest inflation rate in the G7, as the only nation in the group of advanced economies with a reading in double digits after last month's shock increase.What is the current rate of inflation in the US? ›
Basic Info. US Inflation Rate is at 4.93%, compared to 4.98% last month and 8.26% last year. This is higher than the long term average of 3.28%. The US Inflation Rate is the percentage in which a chosen basket of goods and services purchased in the US increases in price over a year.What country has lowest inflation rate? ›
|Rank||Country / Region||Date|
|1||South Sudan||Dec 2022|
|4||Hong Kong SAR||Nov 2022|
Current France inflation rate
The Consumer Price Index for France is 117.5 for the month of April 2023. The inflation rate year over year is 5.88% (compared to 5.70% for the previous month). Inflation from March 2023 to April 2023 was 0.61%.
Raising interest rates
This is the Bank's main method of tackling the problem, and its monetary policy committee (MPC) has already raised the base rate 11 times since December 2021 – it now stands at 4.25%.
- Shop For a Lower Energy Rate. ...
- Rent Out Extra Space in Your Home. ...
- Get Serious About Your Budget. ...
- Contact Your Insurance Broker. ...
- Evaluate Your Grocery Spending. ...
- Buy Generic When Possible. ...
- Pay Off Debts. ...
- Weatherproof Your Home.