Stubborn inflation underscores scale of pressure facing households
The Money Advice Trust comments on figures showing inflation at 8.7% in May 2023, unchanged from April.
The Office for National Statistics has today published its latest Consumer Prices Index, which shows the rate of inflation stood at 8.7% in the 12 months to May 2023, unchanged from April.
Findings from a recent briefing by the Money Advice Trust show the extent to which household finances are already under pressure. Based on a series of UK wide polls, the charity, which runs National Debtline and Business Debtline, found:
- Since March 2022, the number of UK adults who are behind on one or more household bill has risen by 7 percentage points from an estimated 7.9 million to 11.6 million people.
- A fifth (21 percent) of people in receipt of means-tested benefits, such as Universal Credit, have gone without food in the last three months.
- Almost one in five (17%) mortgage holders – equivalent to 2.2 million people – have seen their monthly payments go up as a result of rising interest rates and are now struggling to afford repayments.
“Today’s stubborn inflation figures underscore the pressures facing millions of households whose budgets have already taken a battering. And with interest rates likely to rise further, the situation is likely to get harder for many.
“Food prices and other essential costs remain high – and for those on the lowest incomes who are hit hardest, the choices they are facing are stark. We are already hearing from people skipping meals to make ends meet. The Government needs to ensure that the benefits system provides enough to live on to prevent those people most affected from going without essentials.
“Anyone worried about their finances should contact a free, independent debt advice service like National Debtline as soon as possible.”
National Debtline provides free, independent debt advice at www.nationaldebtline.org.
Business Debtline provides free independent debt advice for small business owners and the self-employed at www.businessdebtline.org