The cost of living crisis has plunged millions into poverty, with reports of food banks running low on donations, people skipping meals and households taking desperate measures to avoid using their heating systems at home.
This is a very critical time and employers need to support their staff in educating them on how to live well and have a healthy diet on a budget.
in April 2022, a number of changes led to sudden increases in costs for millions of people. These changes were:
- Ofgem increasing the energy price cap by 54%, meaning av average £700 annual rise in bills
- A national insurance increase – dubbed the health and social levy by ministers – of 10%, which experts warned would affect the lowest earners the most
- Council tax rising, meaning those in band D could face paying around £2,000 annually
- A freeze on the income tax threshold, meaning a real-terms cut in take-home earnings for most
- Water bills rising
The culmination of overnight changes is likely to result in a “living standards catastrophe”.
Changes that also came into effect were:
- An increase in the National Living Wage – the minimum wage for over-23s – which is too small to compensate for the rise in living costs, amounting to a real-terms cut for some
- A rise in VAT for hospitality businesses, which will be passed onto customers in the form of higher price points
The head of Ofgem announced in May that the price cap is due to rise even further in October to £2,800
Book a free consulation with an Employee Well-being Specialist to find other cost-effective ways to support your employees’ health and wellbeing