I am encouraged by the latest figures showing inflation is down to 7.9 per cent, as we continue to take action to deliver on the Prime Minister’s priority to halve inflation.
Yesterday, the IMF confirmed that we have acted decisively to tackle inflation, and although there is more to do, it is good news that inflation stands at 7.9 per cent, down from just over 10 per cent at the beginning of the year.
The Government is taking action to drive down inflation – getting more people in Mid Sussex into work, taking a responsible approach to the public finances, and supporting the Bank of England, while helping households with the cost of living by holding down bills through the Energy Price Guarantee and freezing fuel duty. This is alongside our £94 billion cost of living support package which I know has been warmly welcomed by constituents.
I am assured the Government will not hesitate in its resolve to support the Bank of England as it seeks to squeeze inflation out of our economy, while also providing targeted support with the cost of living.
More broadly, we are supporting families by:
- Showing progress on the promise to halve inflation by the end of the year, as our £94 billion support package remains in place. New figures show the rate of inflation is at 7.9 per cent, down from 10.1 per cent at the beginning of the year. Whilst we work on this promise, we have a £94 billion package of cost of living support in place, worth £3,300 on average per household.
- Supporting low-income households with cost of living payments, with some households receiving up to £1,350 of support. Building on the £1,200 of support received in 2022, millions of households will get up to £1,350 of government support in 2023-24: £900 for households on means-tested benefits being paid from April; £300 for pensioner households and £150 for disability benefit claimants.
- Uprating benefits and the State Pension in line with inflation, protecting the most vulnerable households. To protect the most vulnerable, benefits increased in line with inflation. More than ten million households in receipt of working-age and disability benefits will see an increase in their benefit payments. The average uplift for households Universal Credit will be around £600.
- Extending the Household Support Fund to over £2 billion, ensuring local authorities can support the most vulnerable families in their communities. We have provided the Household Support Fund with an additional £842 million to establish schemes that support vulnerable families. This brings the Fund to over £2 billion in value since its creation.
- Increasing the National Living Wage by 9.7 per cent, giving an average of £1,600 for two million low paid workers. On 1 April 2023, the National Living Wage increased by 9.7 per cent to £10.42 an hour for workers aged 23 and over. This represents an increase of over £1,600 to the annual earnings of a full-time worker on the NLW and is expected to benefit over two million low paid workers.