“Worst yet to come” with inflation hitting lowest incomes hardest
The latest UK Consumer Prices Index (CPI) figures, published today by the Office for National Statistics, show that CPI rose to 9.4 percent in the twelve months to June, up from 9.1 percent in May.
With the next increase in the energy price cap to be announced in August and estimated to rise to over £3,000, the charity is warning that more support is needed for those on the lowest incomes already struggling.
Joanna Elson CBE, chief executive of the Money Advice Trust, the charity that runs National Debtline and Business Debtline, said: “The unrelenting rise in costs, with inflation now at 9.4 percent, is increasing pressure on all households, with the impact not felt equally. With further substantial energy price rises around the corner, our fear is that for people on the lowest incomes, the worst is yet to come.
“At National Debtline four out of ten people we help already do not have enough coming in to cover essential costs, with callers to our Business Debtline facing a similar challenge. And for those that do have a small amount left at the end of each month, this amount is continuing to decrease.
“The Government’s support, which many households will have started to receive, may provide some short-term relief – but for those on the lowest income this will not be enough. Further targeted support is needed, including significantly raising benefits.
“I would encourage anyone worried about their finances, to seek free, independent debt advice as soon as possible from a service like National Debtline.”