UK could see ‘catastrophic’ cost of living increase in 2022

Published on :

The British will be strongly impacted next year by the rise in energy prices and taxes. This is what emerges from a study carried out by the think tank Resolution Foundation which announces, neither more nor less, a ” disaster On the cost of living.

The study Do not go four ways: 2022 will be for the British the year when the post-Covid crisis will be felt the most and it is in the spring that it promises to be particularly difficult. Prices will continue to rise, especially for energy. Inflation is announced at 6% in April, its highest rate since 1992.

Taxes, too, will increase simultaneously: increase in the housing tax, the VAT rate for hospitality and accommodation. Dividend tax rates should also be raised.

These combined effects will have financial repercussions of the order of £ 1,200 per household per year. Wages will continue to stagnate, they should stay at their current level until the end of next year.

The government will have to compensate

This situation will particularly affect low-income families, those most affected by soaring energy bills. To compensate for what the study does not hesitate to call a real ” disaster On the cost of living of the British, Resolution Foundation believes that the government will have no other choice but to act by compensating by lowering taxes and lowering the cap on energy prices.

► To listen and read also: British economy: fragile recovery against a background of shortage and inflation [Aujourd’hui l’économie]


Free subscription

Sing up for the weekly email from Coinews that makes reading the news actually enjoyable. Join us for free

Latest stories

You might also like...