The general election comes amid ‘good news’ on inflation. But the cost of living crisis is far from over for millions
By Isabella McRae Big Issue Senior Reporter
GENERAL ELECTION 2024
Rishi Sunak called a general election against a bleak backdrop.
There are more than 14 million people in the UK living in poverty, including four million children.
As rain poured onto his suit, the prime minister admitted to the nation “it might still be hard when you look at your bank balance” days after he was named in The Sunday Times Rich List, having amassed more wealth than the King.
Sunak timed his unexpected general election announcement around the “good news” that inflation had fallen to near-normal levels.
Prices increased by 2.3% in the year up to April 2024, nearing the Bank of England’s 2% target, which Sunak called a “major moment for our economy”.
But the vast majority (86%) of Brits reject claims that the cost of living crisis is over, according to polling from campaign group Stop the Squeeze. Prices are still rising while millions struggle to afford the essentials.
Helen Barnard, director of policy, research and impact at the Trussell Trust, said: “It is good news that inflation seems to be coming down to within a normal range.
“But the thing that should really worry us is whether a normal state is baking in a level of extreme hardship.”
She added: “This isn’t a problem that’s going to fade away as inflation rates fall.”
Typical annual household energy bills in 2024 are 67% higher in real terms than July 2021, according to the Resolution Foundation.
Food and non-alcoholic drink prices are 32% higher than they were in 2021. This has a greater impact on poorer households, who typically spend a larger proportion of their income on essentials.
Meanwhile, private rents rose by 8.9% in the year up to May 2024, outstripping the average wage rise of 5.7%.
Peter Tutton, head of policy, public affairs and research at StepChange, said “the growing scarcity of social housing” means increasing numbers of financially-vulnerable people have “no choice” but to rent in the private sector.
“Sky-high rents and wider cost of living pressures mean millions of private renters are scraping by or relying on credit to pay their rent,” Tutton said.
Around 10.1 million people in the UK are falling behind on bills or finding their payments a heavy burden, according to Stop the Squeeze.
Megan Davies from the campaign group said: “T
