Rates and the Economy news: page 5
- June 2023
ONS June 2023 data shows RHDI per capita fell 1.9 per cent in 2022-23, less than the 3.7 per cent fall forecast in March 2023
ONS outturn estimates from June 2023 show real household disposable income per person fell 1.9 per cent in 2022-23, less than the 3.7 per cent the fiscal watchdog had forecast in March 2023.
- April 2023
Benefits uprating and benefit cap rise in line with inflation
The UK Government uprated working age benefits and the benefit cap by 10.1 per cent from April 2023, a decision confirmed in the November 2022 Autumn Statement and applied to rates from 10 April 2023.
Dividend and capital gains tax allowance cuts take effect
The dividend and capital gains tax allowances announced in Jeremy Hunt's 2022 Autumn Budget took effect on 6 April 2023, halving the amounts that can be earned before tax is due.
ONS research shows majority of England private rents rose in the year to February 2023
ONS research reported by Which? shows 50.6% of privately rented properties in England had a rent increase in the year to February 2023, with London highest at 66.8%.
Minimum wage rise of almost 10 per cent takes effect
The minimum wage rose by almost 10 per cent on 1 April 2023, with 1.7 million workers gaining directly, according to the Resolution Foundation.
National Minimum Wage and National Living Wage rates rise on 1 April 2023
All National Minimum Wage rates rose on 1 April 2023, with the National Living Wage for workers aged 23 and over increasing 9.7 per cent to £10.42 an hour.
- March 2023
Energy Price Guarantee scaled back from April 2023
The Energy Price Guarantee is being scaled back from April 2023, capping typical household energy bills at £3,000 rather than £2,500, alongside a package of Cost of Living Payments.
Chancellor announces first Budget with Energy Price Guarantee extension and childcare reforms
Jeremy Hunt's first Budget extends the Energy Price Guarantee to the end of June, restructures Universal Credit childcare payments and scraps Work Capability Assessments.
Annual CPI inflation falls to 10.1 per cent
Annual CPI inflation fell to 10.1 per cent in March 2023 from 10.4 per cent in February, a seventh consecutive month of double-digit inflation, while food inflation reached a 45-year high.
Budget sets out OBR forecast of falling living standards
The Office for Budget Responsibility's Budget forecast shows living standards falling this year and next and not returning to pre-pandemic levels until the back end of the decade, with mortgagors facing the largest income falls.
UK food price inflation peaks at 19.2%
Scottish Government analysis puts annual food price inflation at 19.2 per cent in March 2023, the highest rate of increase in food prices since 1977, as overall UK inflation eased to 10.1 per cent.
Low Pay Commission opens consultation on 2024 minimum wage rates
The Low Pay Commission is consulting on minimum wage rates for April 2024 and beyond, running from 23 March to 9 June 2023, with recommendations to the Government due in October.
NIESR underlying inflation hits series high
The National Institute of Economic and Social Research said its trimmed-mean measure of underlying UK inflation rose to a series high of 9.9 per cent in March 2023, as food inflation reached a 45-year high.
- February 2023
Tenth JRF report finds 29.1% of UK individuals below MIS in 2020-21
The Joseph Rowntree Foundation's tenth Minimum Income Standard report estimates 19.2 million people, including 5.7 million children, lived in households below the benchmark in 2020-21.
Bank bosses questioned by Treasury Committee over passing on base rate rises
High street bank bosses were questioned by the Treasury Committee in February 2023 over why Bank of England base rate rises had not been passed on to savers.
- January 2023
ONS release published on how changes in housing costs are impacting households
The Office for National Statistics published an analysis on 9 January 2023 examining how rising mortgage rates and rents are affecting UK households, including those whose fixed deals are due for renewal.
- December 2022
NIESR projects peak Bank Rate effects on mortgage holders
The National Institute of Economic and Social Research projects that nearly four million UK households will face higher monthly mortgage repayments, typically around £400 more, once Bank Rate peaks.
- November 2022
Autumn Statement 2022 delivered by Jeremy Hunt
Jeremy Hunt's Autumn Statement of 17 November 2022 raised taxes, cut energy bill support from April and uprated benefits by 10.1 per cent, with the Resolution Foundation warning of a 7.1 per cent fall in household incomes.
Autumn Statement sets benefits uprating at 10.1% and raises benefit cap
The Autumn Statement uprated most benefits by September's 10.1% CPI from April 2023, raised the benefit cap for the first time since 2016 and extended cost of living payments and energy support.
Energy Price Guarantee to become less generous from April 2023
The Energy Price Guarantee will be scaled back from April 2023, with a typical household bill rising to £3,000, the Resolution Foundation says in its analysis of Jeremy Hunt's Autumn Statement.
Autumn Statement freezes income tax thresholds and lowers top rate threshold
The November 2022 Autumn Statement froze personal income tax thresholds, lowered the top rate threshold, announced a means tested £900 cost-of-living payment and committed to the pensions triple lock.
Chancellor announced cost of living support package
Jeremy Hunt's 2022 Autumn Statement introduced a package of cost of living support, including three payments worth £900 for means-tested benefit claimants and extra help for pensioners and disabled people.
NIESR responds to the 2022 Autumn Statement
The National Institute of Economic and Social Research said the Chancellor should have given households more support, criticising £60 billion of fiscal tightening and a universal energy subsidy.
OBR forecasts record fall in living standards for 2022-23
The Office for Budget Responsibility forecasts real household disposable income per person will fall 4.3 per cent in 2022-23, the largest drop since records began in 1956-57, followed by a 2.8 per cent fall in 2023-24.
Revised Energy Price Guarantee set at £3,000 from April 2023
The Energy Price Guarantee will expire in April 2023 and be replaced by a revised guarantee set at £3,000 for the average household, running until April 2024.
- October 2022
Chancellor statement sets end date for energy support schemes
The Energy Price Guarantee, the Energy Bills Support Scheme and the Energy Bill Relief Scheme are due to end in their current form on 31 March 2023, Consumer Scotland has said after the Chancellor's statement.
JRF analysis shows constituencies affected by possible benefit uprating cut
The Joseph Rowntree Foundation has published constituency analysis showing which areas would be most affected if the Government does not uprate means tested benefits such as Universal Credit in line with inflation.
Energy Price Guarantee to end in April 2023, 18 months earlier than planned
The Chancellor has said the Energy Price Guarantee will end in April 2023, 18 months earlier than planned, a move the Resolution Foundation says could save the Treasury up to £40 billion next year.
Energy Price Guarantee introduced capping typical bills at £2,500 a year
The Energy Price Guarantee took effect on 1 October 2022, capping typical household energy consumption at £2,500 a year after the then Prime Minister announced it on 8 September 2022.
Further price cap rise to around £2,500 expected in October 2022
The Resolution Foundation says commodity market prices point to the October 2022 energy price cap reaching around £2,500, which would put 7.5 million English families in fuel stress.