At the moment, Inflation has been the highest since the last 20 years. This is having a disastrous effect on many parents, children and businesses. April 1 was the day that millions of households across the country dreaded as the energy price cap rose which saw a £693 increase in the standard tarrif. As the Bank of England increased the interest rates on properties from 0.25% to 0.5%, for most people who are looking to buy or rent properties, the average rent has soared all the way to £1000. Nevertheless, VAT has returned to the normal 20%. As warned by experts, there is yet worse to come in October where the average energy bills are expected to increase by 32%.
Factors that contribute to this crisis:
-Shortages of staff in various sectors
-The conflict between Russia and Ukraine and the sanctions that have and are being imposed by other countries
-Supply chain is now disrupted globally
The government is taking many measures to tackle this crisis. It has reduced fuel duty costs by 5p,increased national insurance and proposed many forms of support such as grants and schemes that allow for people to receive some money to help pay off their bills, etc. However, this is simply not effective enough as many households will see a decrease in the standard of living aswages fail to keep up with the increased costs. For the less fortunate people in particular, the ability to tackle this crisis is a challenge in itself.
