INTEREST rates have risen to their highest level in 14 years, the Bank of England has announced.
Today’s announcement details how the BoE raised rates again by 0.5 percentage points, to a huge 2.25% – the highest level of borrowing since 2008.
Under three new announcements, more than one million families are in line for a £100 boost to help with crippling heating costs amid the cost of living crisis.
In another welcome move to support Britain’s families, thousands of households that pay for their energy through commercial contracts will receive a £400 energy bill discount from October – including those that rent.
It came after a Government payment of £150 aimed at helping disabled Brits overcome soaring prices and rising inflation started hitting bank accounts this week.
And Business Secretary Jacob Rees-Mogg also revealed help for businesses – announcing the government will freeze wholesale non-domestic energy costs at £211 per MWh for electricity and £75 per MWh for gas.
Read our live blog below for the latest updates….
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Highest interest rate since 2008
The rate has been lifted by half a percentage point from 1.75% to 2.25%.
This now takes borrowing costs to their highest levels since 2008 during the global financial crisis.
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BREAKING: Bank of England increase interest rates to 2.25%
The Bank of England have raised interest rates again by 0.5 percentage points.
The decision has been made in an attempt to slow the surging cost of living crisis.
The Monetary Policy Committee issued the update.
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Have there been inflation rises in other countries?
The US Federal Reserve announced yesterday that it was raising its interest rate by another three-quarters of a percentage point.
The US are in a similar situation to the UK as inflation in the USA is at a forty year high.
Sweden has also raised its national rate by one percentage point.
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Pound hits 37-year low against the dollar
Following Putin’s accusation that the West is committing “nuclear blackmail” the pound hit its lowest point against the dollar since 1985.
Yesterday morning, the pound hit $1.13040 – its lowest level in 37 years.
It later regained ground, but this one again shows the impact Putin’s bloodthirsty invasion has on our everyday lives.
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Truss to undo recent NI increase
Lizz Truss is expected to undo the recent increase in National Insurance in tomorrow’s announcement.
Since early April workers and employers have paid an extra 1.25p in the pound.
This was to help fund the NHS and social care plan.
Under the previous plan, National Insurance was due to return to its old rate from April 2023.
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Cost of living advice for Halloween
Rebecca Bebbington, online consumer expert at NetVoucherCodes has also advised people that if you’re planning a Halloween party of dressing the house up ready for trick or treaters, have a look at DIY options instead of splashing on expensive decorations.
Rebecca said: “Weigh up the costs of carving your own pumpkins to how much it’ll be to get crafty with glue and glitter for homemade spooky decorations.
“Perhaps think about what can be used more practically such as a hand-sewn pillow which can be used year-round and won’t appear out of place during off-season periods.”
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Useful tips during cost of living crisis
With the energy crisis looming this October, cash-strapped households are being offered nifty tips on how to stretch their monthly budget.
Rebecca Bebbington, online consumer expert at NetVoucherCodes said: “We wanted to help people who are feeling anxious about their bills rising by providing some simple methods to allow them to stretch their cash this autumn.”
The online consumer expert has suggested that turning to cash may be a good way to manage the cost of rising bills.
It’s a simple trick to help with budgeting this autumn, but it’s also a useful way to save money by having physical cash to divide up and allocate towards certain spending areas.
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Costa price rises
An extra 18% has been slapped on some pour-it-yourself hot drink prices, just months after a previous increase.
Caffeine fans battling the cost of living crisis will now face paying an between 15p and 55p more for popular drinks including hot chocolates and lattes.
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Marks & Spencer is increasing staff pay
Marks & Spencer is increasing staff pay for the second time this year.
They are providing 4,500 employees with a £250 shopping voucher according to the Guardian.
The move comes as part of a £15m package to help with the rising cost of living,
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Could your health problems entitle you to £156 a week?
Brits could be entitled to £156 in benefits due to their health conditions.
Just short of three million people in the UK were claiming Personal Independence Payments (PIP) by the end of April, according to the latest official figures.
As many as 70 health conditions could entitle you to a payment, according to government data.
And the DWP says 35 per cent of PIP claimants land the full amount, which could be over £600 a month.
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Marks & Spencer to give workers their second pay rise this year
The high street shop is set to give its employees another pay rise before the end of the year, as it looks to help them through the cost of living crisis.
Workers will see their hourly pay increased to a minimum of £10.20 from October 1.
This follows a pay rise in April and could see workers earn an extra £100 this month.
Stuart Machin, chief executive at M&S said: “Whether you’re running a home or running a business, everyone across the country is feeling the pressure of rising costs.
“We want to do what we can to help ease some of that strain; that’s why we have invested in price to deliver better value for our customers and, why we are investing in our colleague base pay for the second time this year.”
Click here for more details.
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British Gas confirms customers on fixed tariffs won’t be hit with major loophole
The British energy giant has confirmed that its customers won’t fall victim to a loophole in the Energy Price Guarantee.
This loophole would see those on fixed tariffs pay more than the newly-introduced price cap.
A spokesperson for the firm said: “We think it’s the right thing to do to move people who are on fixed tariffs that would benefit from the Governments Energy Price Guarantee automatically.
“As a responsible supplier we need to make things as simple as possible for our customers.”
Click here to read more.
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Three ways to cut fuel consumption during the cost of living crisis
Petrol costs might be gradually falling, but they are still higher than usual.
So, here are three ways to cut your fuel consumption when driving:
- Accelerating gradually without over-revving
- Always driving in the highest possible gear
- Allowing your car to slow down naturally as your brake
Click here for more advice.
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30 ways to save cash during the cost of living crisis
Every little change can help when bills are rising the way they are.
Here is a list of ways Brits have been saving money during the cost of living crisis.
- Turn the heating down
- Making sure lights are always turned off
- Buy own brand products at the supermarket
- Take lunch into work
- Turn off all electrics when not using/out of the home
- Wear a jumper instead of turning on the heating
- Save leftovers for another meal
- Using discount vouchers
- Use a clothesline instead of a tumble dryer
- Collect coupons and money off vouchers
- Buy second class stamps instead of first
- Buy eco-friendly/energy saving bulbs
- Cut down going out
- Shop in budget supermarkets
- Wait for the sales when making purchases
- Buy food and toiletries in bulk
- Turning off all the plugs before leaving the house
- Haggle my home/car insurance
- Price compare at different grocery stores
- Borrow books from your library
- Shop at second hand/charity stores
- Using public transport instead of taxis
- Cut your own hair
- Spend your weekend taking part in free activities
- Go to supermarkets in the evening for yellow sticker deals
- Grow your own vegetables and herbs
- Drink water when eating in restaurants
- Using an older or hand-me-down phone rather than buying the newest model
- Reduce your television/internet packages to the bare minimum
- Selling anything you possibly can on an online marketplace
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Motorists rejoice as the price of petrol falls
In good news for motorists across the nation, Petrol prices have dropped below 166p per litre.
According to the Department for Business, Energy and Industrial Strategy, petrol prices were at 165p per litre on Monday, a dramatic drop from previous months.
These mark the lowest prices seen in the UK since May.
AA fuel price spokesman Luke Bosdet said: “Although the fall in pump prices has slowed in recent weeks, they continue to trickle down steadily.
“This was to be expected as the end of the US summer motoring season eases the pressure on gasoline demand and therefore reduces the wholesale price of petrol in this country.
“At UK street level, petrol prices around 155p a litre are beginning to appear again.”
Click here to read more.
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Tip: Ask energy providers about hardship funds
If you are struggling, ask your supplier what funds are available for you to apply for – you could save up to £2,575.
Here are a few energy provider grants to get you started:
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How to know if you pay National Insurance
National Insurance payments appear on your monthly payslip, but if you are unsure, here is what you need to know.
You pay National Insurance if you’re 16 or over and either:
- an employee earning above £242 a week
- self-employed and making a profit of £6,725 or more a year
Friday’s tax cuts will likely see a reduction in National Insurance payments.
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How will Friday’s tax cuts affect your wages?
On Friday, Liz Truss is set to announce a so-called “mini-budget.”
This announcement is expected to bring forward a cut to income tax and reverse a 1.25% point hike to National Insurance.
So, how will you be affected?
Click here for more details on upcoming tax cuts.
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How to complain if you DIDN’T get the COL payment
The Department of Work and Pensions (DWP) issued an update stating tax credit claimants can now complain if their payment didn’t arrive.
New guidance on the government website states: “Tax Credits claimants can now let HMRC know if they think they should have had the £326 Cost of Living Payment, but cannot see it in their bank, building society or credit union account.”
You should have received the payment if you claim any of these benefits:
- Universal Credit
- Income-based JSA
- Income-related ESA
- Income Support
- Pension Credit
- Tax Credits
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Marks & Spencer to give workers their second pay rise this year
The high street shop is set to give its employees another pay rise before the end of the year, as it looks to help them through the cost of living crisis.
Workers will see their hourly pay increased to a minimum of £10.20 from October 1.
This follows a pay rise in April and could see workers earn an extra £100 this month.
Stuart Machin, chief executive at M&S said: “Whether you’re running a home or running a business, everyone across the country is feeling the pressure of rising costs.
“We want to do what we can to help ease some of that strain; that’s why we have invested in price to deliver better value for our customers and, why we are investing in our colleague base pay for the second time this year.”
Click here for more details.
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Jacob Rees-Mogg comments on new business plan
Today, a new plan to help businesses during the cost of living crisis was announced.
Revealing the new package, business secretary Jacob Rees-Mogg said: “We have seen an unprecedented rise in energy prices following Putin’s illegal war in Ukraine, which has affected consumers up and down the country and businesses of all sizes…
“This, alongside the measures we are taking to boost the amount of domestic energy we produce to improve both energy security and supply, will increase growth, protect jobs and support families with their cost of living this winter.”
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Cut down on petrol and diesel by adapting how you drive!
Petrol costs might be gradually falling, but they are still higher than usual.
So, here are three ways to cut your fuel consumption when driving:
- Accelerating gradually without over-revving
- Always driving on the highest possible gear
- Allowing your car to slow down naturally as your brake
Click here for more advice.
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Gas guzzling appliances in your home
Each appliance in your house will become more expensive to use this October, despite the government’s wide-spanning energy plan.
Below, you can see just how much each appliance may cost in October.
The price cap on showers will increase by over £40, while using a hob will become twice as expensive as it is currently.
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CHECK your National Insurance payments
You pay National Insurance if you’re 16 or over and either:
- an employee earning above £242 a week
- self-employed and making a profit of £6,725 or more a year
Friday’s tax cuts could see a reduction in National Insurance contributions.
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Home heating oil customers to get £100 payment
Those with home heating in Northern Ireland will receive the government payment.
A statement released read: “The government will also provide an additional payment of £100 to households across the UK who are not able to receive support for their heating costs through the Energy Price Guarantee.
“This might be because they live in an area of the UK that is not served by the gas grid and is to compensate for the rising costs of alternative fuels such as heating oil,” reported the BBC.
This post first appeared on thesun.co.uk
