FOOD bank users are refusing to take potatoes and root vegetables because they “can’t afford energy to boil them”, the boss of Iceland has said.
Richard Walker, managing director of the supermarket chain, made the comment ahead of Rishi Sunak’s Spring Statement today where he called on the government to focus more on consumers.
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“I think the cost-of-living crisis is the single most important domestic issue that we’re facing as a country and it is incredibly concerning,” he told BBC Radio 4’s Today programme this morning.
“You know, we’re hearing about some food bank users declining potatoes and root veg because they can’t afford the energy to boil them.”
Households are facing higher energy bills as the current price cap of £1,277 will increase to £1,971 in April.
This means around 22 million homes that are on standard variable tariffs will have to fork out more to stay warm, alongside the financial pressures of price rises at the supermarket and tax increases too.
Mr Walker said businesses were not “an endless sponge that can soak it all up” and suggested energy price caps for customers could be extended to businesses.
The Iceland boss said price increases can be seen across the supply chain, which are due to shortages of workers and higher transportation costs.
Meanwhile, shortages of fertiliser from Russia and sunflower oil from Ukraine also have had an impact.
It comes after a former Sainsbury’s boss warned “the cost of living crisis has yet to arrive”.
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Justin King, who was chief executive of the chain for 10 years, said food price inflation would continue until next year, which is likely to hit 10%.
Speaking to The Express, he said: “We’ve already seen a significant increase in food or drink prices, somewhere in the region of five per cent.
“I think it will get closer to 10 per cent and I think it will last a deal longer than is the central view, certainly well into next year and probably through next year.”
Inflation has soared to 6.2% in February, its highest level since March 1992.
The Consumer Price Index was up from 5.5% in January, latest ONS data reveals.
Mr King said it would be wishful thinking that the price hikes are only short-term.
“If you take the cost of wages, they are a big part of the cost of food and I doubt very much whether this year’s pay deals are going to be ahead of inflation, so there is going to be some matching up to do,” Mr King added.
“In truth, the cost of living crisis has yet to arrive. It’s the increase in energy prices in particular which is going to hit most households hard, quickly followed by the increase in National Insurance.”
How to save money on your food shop?
There are ways shoppers can combat the rising costs, from yellow sticker bargains to schemes and grants that provide struggling families a helping hand.
Here are a list of discounts codes and offers for you to splash your spends wisely.
You could also save money on your food shop by taking a trip to the wholesalers instead of the supermarket – one savvy shopper managed to save over £200 by doing so.
Other ways to save money on your shopping include loyalty cards, recycling and credit card cashback.
Here’s the list of energy firms hiking bills including British Gas and Octopus – and how much more you will pay.
Meanwhile, we explain the latest energy bill help you can get including £200 loan and £150 council tax rebate.
Plus, here’s everything you need to do to get ready for the energy price hike next week – including taking a meter reading and checking for grants.
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