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Cost of Living

Question for Treasury

UIN 138296, tabled on 11 March 2022

To ask the Chancellor of the Exchequer, if he will undertake an impact assessment of the increasing cost of energy, food and fuel on families with average and low incomes.

Answered on

16 March 2022

The independent Office for National Statistics (ONS) is responsible for the calculation of consumer price indices (CPI). On 28 January 2022, the ONS restarted publication of CPI inflation broken down by income, having previously suspended this due to the unavailability of many items for price quotes during the pandemic. The ONS find that high-income and low-income households have experienced similar annual inflation rates since 2014. This publication looks at CPI up to December 2021, and we recognise that since then there have been increasing pressures, particularly for lower- and middle-income households, as a result of rising energy prices and high inflation.

We understand the pressures people are facing with the cost of living, and that a range of factors mean individuals may experience cost rises differently. We are providing support worth over £20 billion across this financial year and next that will help families with the cost of living. This includes the £9.1 billion package announced in February 2022 to help households, in particular lower- and middle-income households, with rising energy bills.

Answered by

Treasury