Latest news with #householdBills
Sky News
21-05-2025
- Business
- Sky News
Inflation figures awkward for a government promising to boost household finances
Inflation is the most relatable economic metric. You might tut at sluggish GDP or sigh at labour market data, presuming you notice them at all, but inflation is the number you feel in your pocket. This month the link could not be plainer. The headline rate of CPI inflation in April jumped 3.5% on the same time a year ago, up almost a percentage point on March, and driven largely by the timing of changes in household bills. April is the start of the new financial year, and households do not need the Office for National Statistics (ONS) to tell them that means price rises. Combined gas and electricity prices are up almost 7% and water bills more than 25% on average, and index-linked broadband and mobile phone increases kicked in too. Add a council tax hike of 5%, not included in the CPI calculation, and Sky News analysis suggests an average annual increase of almost £500 for every household, inescapable for billpayers and awkward for a government that came to power promising to put more money in people's pockets. That case is harder to make when policy choices are considered inflationary. The ONS pointed to increases in transport costs driven by vehicle excise duty - car tax - for both electric and internal combustion engine vehicles. April also saw the introduction of increased employer National Insurance payments and a reduced threshold, along with a 6% increase in the minimum wage, welcome for employees but another pressure on business. 1:23 Chancellor Rachel Reeves did not deny that these costs would weigh on employers and could impact prices, but remains steadfast that tax rises were necessary to stabilise the public finances she inherited. She cited the potential impact of recent deals with the US, India and this week the EU to boost trade. The good news is that this may be close to the peak of an inflation surge long anticipated by the Bank of England and, while wages continue to rise faster than prices, the rate of increase may be slowing down. There are also some statistical factors that inflate the April figure a little too, primarily a late Easter (last year it fell in March) which pushed up spending on airfares, recreation and culture.
The Independent
21-05-2025
- Business
- The Independent
The reasons behind the latest inflation surge
UK inflation rose to 3.5 per cent in April, the highest month-on-month increase in two-and-a-half years. This rise is attributed to increased household bills, including higher gas and electricity prices due to the Ofgem price cap adjustment, water and sewerage bills, and vehicle excise duty. Price pressures like higher employer National Insurance contributions and the National Living Wage increase also contributed. Partially offsetting these increases were decreased prices for motor fuels and clothing. The Bank of England is expected to consider this inflation data when deciding on potential interest rate cuts in June.
Times
21-05-2025
- Business
- Times
UK inflation jumps to 3.5% led by rise in household bills
Inflation jumped to its highest level in over a year last month, pushed higher by a range of household bills rising sharply in 'awful April', official figures showed on Wednesday. The Office for National Statistics (ONS) said inflation climbed to 3.5 per cent on an annual basis last month, up from 2.6 per cent in the previous month and to the steepest level since January 2024. Analysts had expected an inflation rate of 3.3 per cent. Core inflation, which excludes energy, food, alcohol and tobacco prices, was also higher than expected at 3.8 per cent, up from 3.4 per cent in March and above the 3.6 per cent forecast. Services inflation, which is closely watched by the Bank of England, rose to 5.7 per cent
Daily Mail
21-05-2025
- Business
- Daily Mail
Brits battered by soaring prices in 'awful April': Inflation surges to 3.5% - far higher than expected - in huge blow to Reeves as BoE warns on interest rate cuts
UK inflation surged to its highest level for more than a year last month after households were hit by a raft of 'awful April' bill increases, official figures have revealed. The Office for National Statistics (ONS) said Consumer Prices Index (CPI) inflation hit 3.5% in April, up from 2.6% in March and the highest since January 2024. Economists had been expecting a rise to 3.3% last month. Cabinet minister Steve Reed acknowledged the rise in inflation was 'disappointing' - while Shadow chancellor Sir Mel Stride blamed Rachel Reeves for the hike in inflation. It comes after Ofgem 's energy price cap rose by 6.4% in April, having fallen a year earlier, alongside a raft of bill rises for under-pressure households, including steep increases to water charges, council tax, mobile and broadband tariffs. ONS acting director-general Grant Fitzner said: 'Significant increases in household bills caused inflation to climb steeply. 'Gas and electricity bills rose this month compared with sharp falls at the same time last year due to changes to the Ofgem energy price cap. 'Water and sewerage bills also rose strongly this year, as did vehicle excise duty, which all pushed the headline rate up to its highest level since the beginning of last year.' Cabinet minister Steve Reed acknowledged the rise in inflation was 'disappointing'. The Environment Secretary told Times Radio: 'I recognise these are disappointing figures. I know how much people are struggling with the cost of living crisis, but no one said that this problem could be fixed overnight. 'And I think you have to look at these figures in the round, we've brought double-digit inflation way down now. 'We're stabilising the economy. We're putting money back in people's pockets with an increase in the minimum wage that puts £1,400-a-year into the pockets of some of the lowest paid. 'We've seen fuel duty frozen. We've had four interest rate cuts in a row now, and for the first quarter of this year, we now have the fastest growth in the G7 so there's a lot of positive information out there as well.' Shadow chancellor Sir Mel Stride blamed Rachel Reeves for the hike in inflation. He said: 'This morning's news that inflation is up - and now well above the 2% target - is worrying for families. 'We left Labour with inflation bang on target, but Labour's economic mismanagement is pushing up the cost of living for families - on top of the £3,500 hit to households from the Chancellor's damaging jobs tax. 'Higher inflation could also mean interest rates stay higher for longer, hitting family finances hard. 'Families are paying the price for the Labour Chancellor's choices.' Chancellor Rachel Reeves said: 'I am disappointed with these figures because I know cost of living pressures are still weighing down on working people. 'We are a long way from the double-digit inflation we saw under the previous administration, but I'm determined that we go further and faster to put more money in people's pockets. 'That's why we have increased the minimum wage for millions of working people, frozen fuel duty to protect commuters and struck three trade deals in the past two weeks that will go towards cutting bills.'
The Independent
21-05-2025
- Business
- The Independent
Inflation soars to highest for more than a year on ‘awful April' bill increases
UK inflation surged to its highest level for more than a year last month after households were hit by a raft of 'awful April' bill increases, official figures have revealed. The Office for National Statistics (ONS) said Consumer Prices Index (CPI) inflation hit 3.5% in April, up from 2.6% in March and the highest since January 2024. Economists had been expecting a rise to 3.3% last month. It comes after Ofgem's energy price cap rose by 6.4% in April, having fallen a year earlier, alongside a raft of bill rises for under-pressure households, including steep increases to water charges, council tax, mobile and broadband tariffs. ONS acting director-general Grant Fitzner said: 'Significant increases in household bills caused inflation to climb steeply. ' Gas and electricity bills rose this month compared with sharp falls at the same time last year due to changes to the Ofgem energy price cap. ' Water and sewerage bills also rose strongly this year, as did vehicle excise duty, which all pushed the headline rate up to its highest level since the beginning of last year.'
