UK inflation unexpectedly remained at 6.7% in September, remaining robust. bank of englandtarget is 2%, the cost of goods and services remains high, and household budgets are under pressure.
Rising oil prices during September prevented the expected decline in price growth and increased the cost of a liter of gasoline at the pump. On the other hand, the number of unemployed people is increasing due to a weakening job market. On a more positive note, average wage growth rose at an annual rate of 7.8% from June to August, outpacing inflation for the first time in two years.
Threadneedle Street has so far resisted the urge to raise interest rates to 5.5% in response, preferring to leave them unchanged at 5.25%, as the situation remains “challenging”, as central bank governor Andrew Bailey says. I’m here. The central bank’s Monetary Policy Committee is scheduled to cut interest rates again in November, but it does not appear to be in a position to start doing so until next spring.
Hugh Pill, chief economist at the Bank of England, told think tank OMFIF on October 15: “We still have work to do to get back to 2%.”
“And perhaps when we get back to 2%, there are some things we need to do to ensure that we get there in a sustainable way over the long term.”
Prime Minister Jeremy Hunt also gave a pessimistic assessment of the economy ahead of the Autumn Budget, given the outbreak of new international conflicts, and Paul Johnson, director of the Institute for Fiscal Studies, said the UK remained in a “terrible financial bind”. I warned you that there is. The country will enter a “moderate” recession in 2024, with no immediate prospects for tax cuts or increases in public spending.
All of this is frustrating for consumers, even though inflation is currently well below the 40-year high reached 12 months ago.
However, low-income households continue to receive state financial support, outlined below.
Latest support payment coming up
Despite Rishi Sunak’s Energy Bill Support Scheme – an initiative that handed out £400 in monthly installments of £66 and £67 – to expire at the end of March this year, millions of people on low incomes have been left with no money from the government. They will receive further support for living expenses. The government is worth up to £1,350 in total this calendar year.
Eight million eligible means-tested benefit claimants, including those in receipt of Universal Credit, Pension Credit and tax credits, will soon receive a £300 boost to their next living allowance package as part of a program launched this spring. You will receive it directly. The Department for Work and Pensions (DWP) has announced that the money will be transferred to bank accounts in three installments.
Total payments will total £900.
More than six million disabled people have already received an extra £150, and more than eight million pensioners will receive an extra £300 this winter.
here it is Payment counter Announced so far, a more exact date for the final episode will be announced soon.
- £301 – First subsistence payment – issued between April 25th and May 17th (May 2nd to May 9th for people receiving tax credits but no other low income allowances) until the day)
- £150 – Disability Allowance – Issued between 20th June and 4th July.
- £300 – second subsistence payment – issued to most people between 31st October and 19th November
- £300 – Payment to pensioners – During winter 2023/4
- £299 – 3rd living expenses payment – during spring 2024
Advantages of going out as usual
Normal state support in the form of benefits and pension payments is also expected to continue as usual in November, with no bank holidays scheduled to disrupt delivery times.
Anyone expecting to receive any of the following from the DWP can receive their money on the usual dates this month.
- universal credit
- national pension
- Pension deduction
- Disabled living allowance
- personal independence allowance
- Nursing care allowance
- caregiver allowance
- Employment support allowance
- income support
- Job applicant allowance
For more information about how and when state benefits are paid, visit: government website.
Energy price ceiling expected to fall further
The relatively warm weather for much of October delayed the need to switch on the central heating for the first time in months, but the cost of heating homes was a major concern for many people during last winter. Considering this, this was a welcome development.
Meanwhile, the energy crisis that started sending electricity and gas prices soaring a year ago has largely subsided, with the government’s Energy Price Guarantee (EPG) in short-lived moderation to ensure households pay nothing. Introduced by the Prime Minister in September 2022. His electricity bill was more than £2,500, with the government subsidizing the rest he owed to his provider under Ofgem’s Energy Price Cap (EPC), but when the cap fell below his £2,500 in July. , it finally became meaningless.
At this point, the average consumer is back to paying the top rate as usual, with a significant 17% reduction from £3,280 in Q2 to £2,074 in Q3, with a corresponding EPG of £2,074. It was raised to the pound. 3,000 is a harmless technical term for most people.
Ofgem then announced that the EPC for the final quarter of this year would be set at £1,923 (or £1,949 for prepaid plans).
The recent drop reflects a recent decline in wholesale energy prices – the amount you pay for electricity and gas before energy companies deliver it to your home. And while it is a significant drop from the eye-watering rates of the past two years, the figure is still almost £1,000 a year above pre-pandemic levels.
As for what happens next, Cornwall Insight analysts say: Another slight decline Presumably, by the time the next EPC is published for the quarter commencing 1 January 2024, the normal annual bill will be £1,897.97.
The forecaster also expects similar modest declines in the second and third quarters of next year, followed by a slight increase in October 2024.
Nevertheless, overall the situation looks much more stable than a year ago, when the buzz of Russia’s war in Ukraine was first felt in global markets.
Warm Home Discount Returns
As the cold weather sets in, another piece of good news for household energy bills is the Government’s ‘Warm Homes’ scheme, which was first introduced in 2011 and offers qualifying recipients £150 off their domestic electricity and gas bills. The discount system has been reinstated.
Learn more about Warm Home discount eligibility.