Responding to the CPI inflation figures for June 2024, released by the Office for National Statistics, Rebecca Florisson, Principal Analyst at the Work Foundation for Lancaster University said:

“CPI inflation has met the Bank of England’s target rate of 2% for the second month in a row. However, there is little time to celebrate as the sustained period of double-digit inflation during 2022 and 2023 means that people are still poorer than they were at the start of the last Parliament in 2019.

“And workers are still facing rising prices. Interest rates remain at their highest level for 16 years at 5.25%, leaving many facing a ‘cost of housing’ squeeze. The Bank of England estimate that three million households are set to see their mortgage payments rise in the next two years. Meanwhile private rents continue to soar, with average rents rising by £101 per month.

“Many workers are still facing financial insecurity, including the 1.4 million people who are in privately rented accommodation and in severely insecure work who face insecurity at work and at home.

“These factors underscore the importance of the new Government committing to action on strengthening economic growth, housing supply and worker rights in the King’s Speech later today. Alongside legislation to underpin longer-term reform, the Government should also commit to helping those workers most in need with their bills by extending the Household Support Fund into 2025, which is currently due to expire at the end of September.”

Sources:

• Bank of England Financial Stability Report 2024: https://www.bankofengland.co.uk/financial-stability-report/2024/june-2024
• ONS Private rent and house prices, UK: June 2024: https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/privaterentandhousepricesuk/june2024
• Double Jeopardy: Insecurity at work and at home (April 2024): https://www.lancaster.ac.uk/work-foundation/publications/double-jeopardy