The Treasure Select committee is warning that Russia’s invasion of Ukraine will have a major impact on the UK’s cost of living, and MPs said the government should provide more support to those on the lowest incomes
Tougher sanctions against Russia will lead to higher domestic prices with knock-on effects for households and businesses.
The influential Treasure Select Committee has warned that Russia’s invasion of Ukraine will have a major impact on the cost of living in Britain.
MEPs said that while they supported tough sanctions against the Putin regime, the government should provide more support to those on the lowest incomes at home.
Mel Stride, the committee’s chair, said: “It is becoming increasingly clear that the government must support those most affected by price increases.
“Recent reports show that public finances are in a stronger position than expected and the Chancellor should use this additional fiscal firepower to spur on support for those on the lowest incomes.”
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Chancellor Rishi Sunak has been under pressure to prop up struggling households from rising energy bills and the cost of goods on supermarket shelves, as well as an increase in Social Security.
Money-saving expert Martin Lewis warned that energy companies would increase customer direct debits disproportionately to increase the price cap.
He urged the regulator to “crack down” on the practice as households face a “fiscal slap in the face.”
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Mr Lewis warned that existing government support for energy bills – around £350 a year – would not be enough if they were faced with increases of £1300.
Meanwhile, the Environment Minister said food prices in supermarkets could rise by 8% this summer.
George Eustice told the Food and Drink Federation conference that price hikes in foods like wheat due to the Russia-Ukraine war could cause chicken to become more expensive.
https://www.mirror.co.uk/news/politics/warning-russia-ukraine-war-sanctions-26533675 Warning: War sanctions between Russia and Ukraine will hit Britain's poor as prices rise