Financial matters

[SteveH]

Who is eligible for DWP ?150 disability cost of living payment in June 2023
The Department for Work and Pensions today confirmed the exact date money will start to be paid out

cont https://www.walesonline.co.uk/news/cost-of-living/who-eligible-dwp-150-disability-26946109?IYA-reg=49560bcd-5a9c-47f0-8fc5-ba2e71710589

[SteveH]

State pension update with up to ?700 boost coming for retirees
The triple lock system will result in extra cash for pensioners

cont https://www.dailypost.co.uk/news/north-wales-news/state-pension-update-up-700-26953571?IYA-reg=49560bcd-5a9c-47f0-8fc5-ba2e71710589

[SteveH]

Food prices still worryingly high, admits Chancellor Jeremy Hunt     

Food prices in the UK continued to surge at the fastest rate in nearly 45 years in April as inflation fell at a slower pace than expected.

The rate at which grocery prices rose slowed marginally in the year to April, but at 19.1% is close to record highs.

It comes as the overall UK inflation rate fell sharply to hit single figures for the first time since last August.

However, it did not decline as much as expected and the chancellor said food prices remained "worrying high".

Prices rose by 8.7% in the year to April, according to the Office for National Statistics (ONS).

This is down from 10.1% in March but above the 8.2% figure widely forecast by analysts.

cont https://www.bbc.co.uk/news/business-65682243

[SteveH]

Energy bills have been crippling the nation for over a year now, with many households being pushed beyond breaking point. However, a glimmer of hope has come through for the first time since the crisis hit headlines in 2022.   

The price households pay for energy "will drop considerably" in July, the energy regulator confirmed to Money Saving Expert founder Martin Lewis on ITV's Good Morning Britain. It comes ahead of next week's Ofgem announcement on the new price cap rate from 1 July, which is predicted to fall below the UK Government's current Energy Price Guarantee.

The energy regulator confirmed that prices are set to drop from July 1, 2023. The nugget of good news came during an interview with Martin Lewis that took place live on ITV's Good Morning Britain last Wednesday, May 17.

Ofgem confirms energy prices 'will drop considerably' from July
During the broadcast, Martin shared his predictions of "a 17.5% drop" when the price cap comes out in July. Energy regulator Ofgem's director for strategy and decarbonisation Neil Kenward declined to give out figures ahead of the information being formally published today (Thursday, May 25).

Mr Kenward said: "It's obviously sensitive until then, we haven't actually finalised the number. But I can be clear that the number will be down considerably on the ?2,500 limit that applies at the moment for that average annual bill."

cont https://www.dailypost.co.uk/news/north-wales-news/martin-lewis-say-considerable-drop-26984823


PS
Ofgem has lowered the energy price cap by more than ?1,200 for the average household in England, Wales and Scotland.

The reduction will come into effect from July 1, with the price cap dropping from ?3,280 per year to ?2,074 per year to reflect the recent falls in wholesale energy prices.

The lower cap will replace the Government?s Energy Price Guarantee (EPG), which currently limits the typical household energy bill to around ?2,500.

It means the average household will see their annual bill drop by ?426.

cont https://www.northwalespioneer.co.uk/news/23546002.energy-bills-ofgem-lower-energy-price-cap-1-200/

[SteveH]

Government plans to introduce a cap on the price of basic food items will not help tackle the rising cost of living, retailers have warned.

The British Retail Consortium (BRC) said the measures would not make a "jot of difference" and could thwart efforts to cut inflation.

A voluntary agreement with major retailers could see price reductions on basic food items like bread and milk.

There are no plans for a mandatory price cap, No 10 sources have stressed.

The idea of a cap or freeze on basic food items, as first reported by the Daily Telegraph, is said to be at the "drawing board stage".

Supermarkets are expected to be allowed to select which items they would cap and only take part in the initiative, modelled on a similar agreement in France, on a voluntary basis.

But there is some doubt over what impact a price cap would have, with the scheme facing criticism from retailers and opposition MPs.

https://www.bbc.co.uk/news/uk-65743163

[SteveH]

There has been a "massive shift" in the way we do our grocery shopping since the pandemic, analyst firm Kantar has told the BBC.

Among the changes, shoppers now visit the supermarket less often, spend more on own-label goods and are turning to loyalty schemes to get discounts.

The cost-of-living crisis has helped drive the changes, as food prices soar.

But trends such as the rise of the discounters Aldi and Lidl go back further.

The BBC has identified five key ways shopping has changed based on data exclusively compiled by Kantar.

cont https://www.bbc.co.uk/news/business-65820543

[SteveH]

Wales has seen the largest increase in unemployment over the past year, according to figures from the Office for National Statistics.

Unemployment stood at 4.8%, the highest total in the UK alongside the west Midlands, estimates from February to April 2023 showed.

This is 1.3 percentage points higher than the same time period in 2022 and 0.2 percentage points up on last month.

Overall, the UK's unemployment rate stands at 3.8%.

Across the UK as a whole, unemployment fell slightly and the numbers working rose - but in Wales, the opposite happened.

The fall in employment rate was highest in Wales, dropping by 2.2 percentage points, with 71.8% of people in work.

The number of jobs in Wales fell by 11,000 between December and March.

Wales also saw the largest increase in the economic inactivity rate, compared with the same period last year.

This figure of 24.4% is up 1.1 percentage points on a year ago, although this was 0.6 percentage points lower than the previous quarter.

https://www.bbc.co.uk/news/uk-wales-65887988

[SteveH]

Martin Lewis' seven tips that could save hundreds of pounds on water bills
Water bills rose by an average of 7.5% - a jump of ?31 a year on a typical bill

Utility bills have been crippling many households. The sky-high cost of gas and electricity have been hitting the headlines on an almost daily basis.

Water bills too rose by an average of 7.5% in April 2023 ? that's a hike of ?31 a year on a typical bill. People wrongly assume that because you can't switch to a different water company that costs can't be cut.

cont https://www.dailypost.co.uk/news/cost-of-living/martin-lewis-seven-tips-could-27123745

[SteveH]

Tesco sees early signs inflation is starting to ease

The supermarket said that in the three months to the end of May, UK sales were up 9% from a year earlier to ?10.8bn.

Households have been facing soaring prices, with food inflation hitting 19.1% in the year to April.

Tesco boss Ken Murphy said he was "very conscious" of the cost of living pressures facing shoppers.

But he denied that the supermarket was profiteering, adding: "There are encouraging early signs that inflation is starting to ease across the market."

Critics have accused food retailers of "greedflation" - putting prices up to bolster profits.

https://www.bbc.co.uk/news/business-65925217

[SteveH]

UK inflation shock paves way for interest rate hikes
Interest rates are expected to rise again after figures revealed inflation remained at a stubbornly high level.

Inflation, which measures the pace prices rise at, was 8.7% in the year to May, the same rate it was in April.

Prices for flights and second-hand cars rising led to the unexpected figure, but the cost of food and energy is already hitting household budgets hard.

The Bank of England is expected to raise interest rates by 0.25% to 4.75% in a bid to reduce inflation.
But some economists have suggested the Bank could decide on Thursday to implement a more aggressive increase of 0.5%.

Part of the Bank's job is to keep inflation at a target rate of 2% - far lower than the current rate of 8.7% and the markets have already priced in a interest rate hike.

Why Is UK inflation so high?    https://www.bbc.co.uk/news/business-65966723


Buy now, pay later: People using service for food, warn charities
More young people are getting into buy now pay later debt as some turn to schemes for essentials, charities say.

Firms such as Clearpay, Zilch and Klarna let people pay their debt off over a short period, but many charge a fee if payments are missed.

Molly Dixon went "cold turkey" after some of her friends ran up "?500 worth of debt they can't pay" and she "never wants it to get to that point".

The UK government said it was ensuring schemes were "safe and regulated".
https://www.bbc.co.uk/news/uk-wales-65962530

[SteveH]

Centrica boss warns energy bills will stay high for foreseeable future

Energy bills are likely to stay high for the foreseeable future, according to the boss of the company that owns British Gas.

Centrica chief executive Chris O'Shea said while he believes the worst of the energy crisis is over, risks remain.

A new price cap comes into effect this weekend which will see households with typical energy usage pay ?2,074.

Mr O'Shea said prices have fallen from the rise caused by the Russian war, but are higher than the long-term average.

"I think the first act of the crisis is over," he said. "I think what we've got to remember is the energy prices had more than doubled before Russia invaded Ukraine.

"Now, prices are back down to pre-invasion levels but they're still two and a half times the long run average."

Gas and electricity bills will fall below the ?2,500 level that was subsidised by the government under its Energy Price Guarantee scheme.

However, under the new price cap, which is set by the regulator Ofgem, households bills will remain ?800 more expensive than two years ago.

cont https://www.bbc.co.uk/news/business-66051560

[SteveH]

The exact amount people in North Wales will pay for energy bills from today
A new price cap from July 1 means the cost of gas and electricity is finally going to start coming down after two years of sky-high prices

The gas and electricity bills of the people of England, Wales, and Scotland will undergo major changes, starting today. Ofgem has introduced a new price cap, which will reduce household bills by ?426 on average.

Up until June 30, the Government's Energy Price Guarantee covered the average annual family bill for dual fuel direct debits, which is ?2,500. A new Ofgem price cap, set at ?2,074, has now taken its place so rather than setting a maximum amount a household will pay for their energy, the cap limits what providers can charge per unit of gas or electricity, meaning those who use more energy will pay more.

read more https://www.dailypost.co.uk/news/north-wales-news/exact-amount-people-north-wales-27229380

[SteveH]

Contradiction on the above ?

Energy boss says prices might rise this winter

Energy prices could spike this winter forcing governments to step in and subsidise bills again, the head of the International Energy Agency has said.

If the Chinese economy strengthens quickly and there is a harsh winter, gas prices could rise, putting pressure on consumers, Fatih Birol said.
He added that governments should push for energy-saving and boost renewables.

However, a UK government spokesperson said energy bills are set to fall by an average ?430 this month.

Gas prices soared after Russia's invasion of Ukraine, driving up energy bills around the world.

A number of governments then stepped in with support for households, including in the UK, to try to soften the blow to consumers.

The IEA is an agency that works with governments and industry to provide data, analysis and recommend policies.

Mr Birol told the BBC's Today programme that many European governments made "strategic mistakes", including an over-reliance on Russia for energy, and that foreign policy had been "blindfolded" by short-term commercial decisions.

He said this winter "we cannot rule out" another spike in gas prices.

cont https://www.bbc.co.uk/news/business-66061853

[SteveH]

People over 50 who left work during the pandemic are "much poorer" in general than other retirees, research suggests.

The Institute for Fiscal Studies (IFS) said 48% of those who retired in 2020-21 were now living in relative poverty.

They were less likely to receive a pension and had lower levels of well-being than other retirees, the IFS found.

It said disruption from the pandemic and perceived health risks may have forced many to leave work early.

Older workers between the ages of 50 and 70 who left in the first year of the pandemic were "not retiring in comfort", the IFS said, compared with those who had retired even just a year earlier.

The report, which was funded by the Joseph Rowntree Foundation, found that those who had retired in 2020-21 cut their spending on food by about ?60 per week on average.

cont https://www.bbc.co.uk/news/business-66120867

[SteveH]

Record pay rises fuel fresh inflation fears

UK wages have risen at a record annual pace fuelling fears that inflation will stay high for longer.

Regular pay grew by 7.3% in the March to May period from year earlier, official figures showed, equalling the highest growth rate last month.

However, despite the record increase, pay rises still lag behind inflation - the rate at which prices grow.

The pace of wage rises has come under increasing focus by the Bank of England as it tries to control inflation.

The Bank has raised interest rates 13 times in a row in an attempt to reduce the rate of inflation but it has remained stubbornly high.

It currently stands at 8.7%, well above the Bank of England's target of 2%.

The concern is that strong wage growth will increase costs faced by companies and force them to push up prices for their goods even higher.

cont https://www.bbc.co.uk/news/business-66156713