Joseph Rowntree Foundation responds to latest Bank of England monetary policy committee report

Responding to the news that the Bank of England estimates inflation will rise to 13% later this year, Chief Economist at the Joseph Rowntree Foundation, Rebecca McDonald, said:

“Staggeringly high inflation is going to hit low income families hard.

“We already know seven million low income families had to sacrifice food, heating, even showers, this year because they couldn't afford them. Many also took on credit to pay their bills and are falling behind on their payments. This will be much harder to pay off with higher interest rates putting more families in financial peril.

"While the Government might have taken a break from acting on the cost of living emergency, these families can’t take a holiday from the year of financial fear.

“They will be wondering why further urgent solutions needed to shore up family finances ahead of the winter are not yet being put in place.

“The next Prime Minister should immediately revisit the Government’s cost of living support to make sure it’s up to the task. They must also increase basic Universal Credit entitlements to ensure that our social security system always, at a minimum, enables people to afford the essentials when they fall on hard times.”

“A simple thing the government can do now is to stop deducting debt repayments from benefits at unaffordable rates, which leaves too little to cover the essentials at the best of times.”