Rates and the Economy news: page 4
- March 2024
Resolution Foundation research finds UK consumer debt at lowest level since at least 1999
Resolution Foundation research published on 3 March 2024 finds UK consumer debt at its lowest level since at least 1999, down from 23% of household disposable incomes in the mid-2000s to 13%.
Energy Price Guarantee ends in March 2024
The Energy Price Guarantee, which capped domestic energy bills from October 2022, ended in March 2024 after falls in the Ofgem price cap meant it was no longer needed to set maximum prices.
Private rental inflation peaked at 9.1%
Private rental inflation peaked at 9.1% in March 2024 and averaged 8.7% across the year, the Joseph Rowntree Foundation has said, with rents up nearly 8% since the last general election.
- February 2024
Improved private rental and second-hand cars indices introduced into the HCIs
The Office for National Statistics introduced improved private rental and second-hand cars indices into the Household Costs Indices in February 2024, alongside a correction to earlier CPI comparisons.
- December 2023
Guidance amended to reflect energy price cap of £1,928 from 1 January 2024
The Accountant in Bankruptcy has amended its Common Financial Tool guidance to reflect the Ofgem energy price cap of £1,928 a year, which took effect for January to March 2024.
Resolution Foundation publishes October 2023 cost of living survey findings
The Resolution Foundation reports that most indicators of how families are faring remain far more concerning than two or more years ago, with 22 per cent of people in moderate or severe food insecurity in October 2023.
Mortgage arrears rise for fifth consecutive quarter in Q4 2023
UK Finance's Q4 2023 review shows mortgage arrears rose for a fifth consecutive quarter, with 107,250 mortgages in arrears of at least 2.5 per cent of balance in December 2023.
- November 2023
Ofgem to announce energy price cap for January to March 2024
Ofgem was due to set the energy price cap for January to March 2024 on 23 November 2023, with analysts forecasting a five per cent rise in the typical household bill.
Autumn Statement 2023 raises working-age benefits by 6.7% and state pension by 8.5% for 2024-25
Chancellor Jeremy Hunt has raised working-age benefits by 6.7% and the State Pension by 8.5% for 2024-25, while tightening sanctions for claimants who do not look for work.
Chancellor presents Autumn Statement 2023
Jeremy Hunt presented the Autumn Statement 2023 to the House of Commons on 22 November, cutting employee and self-employed National Insurance and abolishing the pensions lifetime allowance.
Autumn Statement extends mortgage guarantee scheme to June 2025 and cuts employee National Insurance by 2p
The Chancellor has extended the mortgage guarantee scheme to June 2025 and cut the main rate of employee National Insurance by 2p, alongside tax and spending measures worth around £17 billion a year.
Energy Price Cap to rise to £1,928 in January 2024
Ofgem's energy price cap will rise to £1,928 for a typical household in January 2024, up from £1,834, adding to winter bills for consumers across Great Britain.
- October 2023
Chancellor claims halving inflation means a 5p boost to real disposable incomes
Jeremy Hunt said on 2 October 2023 that halving inflation would be a 5p boost to real disposable incomes, a claim Full Fact said holds only against a counterfactual of unchanged inflation.
CPI inflation falls to 4.6 per cent in October
UK consumer price inflation fell to 4.6 per cent in October 2023, driven mainly by a reduction in the energy price cap, though core and services inflation stayed higher.
Ofgem introduces new lower TDCVs from October 2023
Ofgem cut the assumed typical household energy use it uses to express the price cap, lowering gas from 12,000 kWh to 11,500 kWh and electricity from 2,900 kWh to 2,700 kWh from October 2023.
- September 2023
Over half a million more pensioners could pay income tax after 8.5% state pension rise, experts warn
LCP estimates around 650,000 more people aged 65 and over would become income taxpayers if the state pension rises 8.5% in April 2024 while the personal allowance stays frozen at £12,570.
Record earnings figures revealed by ONS
ONS figures released on 12 September showed average wage growth of 8.5% including bonuses for May to July, the highest regular annual growth rate since comparable records began in 2001.
Extra 300,000 people projected to fall into absolute poverty in 2024-25
The Resolution Foundation projects an extra 300,000 people will fall into absolute poverty in 2024-25, with median non-pensioner household income flat for a third year.
Resolution Foundation projects three-year household income stagnation around 2024 election
The Resolution Foundation projects zero real growth in median non-pensioner household income in 2023-24, 2024-25 and 2025-26, a three-year stagnation after a sharp fall in 2022-23.
- August 2023
NIESR publishes report on impact of rising interest rates on housing costs
The National Institute of Economic and Social Research has published analysis of how fast-rising interest rates affect housing costs for mortgage holders and renters across the United Kingdom.
- July 2023
End of £400 universal winter Government energy support
The £400 universal Government energy support paid to households over the winter ended as the Ofgem price cap replaced the Energy Price Guarantee, cutting typical annual bills to £2,074 from July.
Energy price cap reductions began lowering domestic fuel budgets
Reductions in the energy price cap from July 2023 cut the domestic fuel element of the Pensions UK Retirement Living Standards budgets by more than a quarter for every household type, new research shows.
Energy Price Guarantee coverage narrowed to prepayment meter customers
Households without a prepayment meter lost Energy Price Guarantee support from July 2023, while prepayment customers remain covered so their costs align with Direct Debit customers.
Energy Price Guarantee made less generous, rising to £3,000 a year
The Energy Price Guarantee became less generous in July 2023, rising to £3,000 a year, but a fall in the price cap meant it no longer set maximum prices and bills fell.
Lower energy price cap commenced
The lower energy price cap that took effect in July 2023 pushed the headline rate of CPI down materially again, as UK Finance reported in its Q2 2023 household finance review.
Ofgem cuts typical domestic consumption values used in price caps
Ofgem has cut the typical domestic consumption values used to calculate the typical household bill in the energy price cap, reducing assumed gas use by 17 per cent and electricity use by 7 per cent.
Ofgem lowers energy price cap to £2,074 for England, Wales and Scotland
Ofgem has lowered its energy price cap for England, Wales and Scotland so that a typical household bill falls to £2,074 a year from July, £426 less than under the Energy Price Guarantee.
- June 2023
Bank of England raises base rate to 5.00%
The Bank of England raised the base rate by 0.50 percentage points to 5.00% on 22 June 2023, taking it from 4.50% and continuing a run of increases that affects mortgages, savings and borrowing costs.
Energy Price Guarantee extended to end of June 2023
The Energy Price Guarantee was extended to the end of June 2023, Consumer Scotland said in its response to an Ofgem call for input on the debt-related costs allowance in the energy price cap.
Market expectations for peak Bank Rate rise to nearly 6 per cent after stronger than expected inflation and pay data
Financial markets raised their expected peak for Bank Rate to nearly 6 per cent in mid-2024 after stronger than expected April inflation and pay data, the Resolution Foundation said.