Cost of living and inflation

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Recent increases in prices skip to link
Energy and fuel prices skip to link
Rising prices and affected households skip to link
Inflation and the economy skip to link
Support for households skip to link
Rent and housing costs skip to link
Students skip to link
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Overview

The cost of living increased sharply across the UK during 2021 and 2022. The annual rate of inflation reached 11.1% in October 2022, a 41-year high, before easing in subsequent months. The inflation rate reached the Bank of England’s target of 2.0% in May 2024. View all research relating to the current cost of living and inflation, including on energy and fuel prices, support for households, rising prices, rent and housing costs, the effect on students, and suggested further reading.

Recent increases in prices

Inflation in the UK: Economic indicators

Inflation measures the change in prices over time. Find the latest data on changes in UK consumer prices, measured by CPI and RPI.
- Economic policy
- Economic situation
High cost of living: Impact on households

This briefing covers how the high period of inflation in the UK from 2021 to 2024 continues to affect household incomes, spending, poverty, savings and debt.
Economic update: How resilient are current supply chains?

Economic effects of the US/Israeli conflict with Iran are emerging for UK consumers and businesses. However, flexible supply chains may cushion price pressures.
Economic update: Middle East conflict and the UK economy

The Israel/US–Iran conflict has disrupted oil and gas in the Middle East. Consequent price rises may lead to higher inflation and lower GDP growth in the UK.
- Economic situation
- Economy
Government support for the cost of heating oil

This briefing provides information on heating oil, recent events that have caused heating oil prices to increase, and government support for those facing increased costs.
- Energy
- Work and incomes

Energy and fuel prices

Petrol and diesel prices

Petrol and diesel prices hit record highs in July 2022. They had fallen back substantially, but have spiked since the start of the Middle East conflict.
- Energy
- Roads
Energy standing charges

What are standing charges? How have they changed over time? How and why do they vary? What proposals does the regulator Ofgem have for lowering them?
- Energy
Domestic energy prices

Typical household energy bills increased by 54% in April 2022 and 27% in October 2022. Lower wholesale prices have led to falls in prices, but current bills are still 43% above their winter 2021/22 levels.
- Energy
Gas and electricity prices during the 'energy crisis' and beyond

Energy prices have fallen since summer 2023, but are still well above pre-'energy crisis' levels and there is little prospect of large cuts to bills in the near future.
- Energy
Constituency casework: Government support for energy bills

This paper answers FAQs on new government support schemes for energy bills, including: the Energy Price Guarantee, Energy Bills Support Scheme, Energy Bills Discount Scheme, Energy Bill Relief Scheme and Alternative Fuel Payments.
- Energy
Energy Prices Bill 2022-23

This briefing provides analysis of the Energy Prices Bill which includes provisions to reduce energy costs for consumers by capping energy bills and reducing wholesale electricity prices.
Energy Bills Support Scheme: Government policy and FAQs

The Government’s Energy Bills Support Scheme will provide a £400 discount on electricity bills to help households with the rising cost of energy. This briefing summarises the policy, first announced in February and updated in May and July 2022, as well as the reaction to it. It also provides information on eligibility for the scheme and answers to frequently asked questions.
- Energy
Imports of fossil fuels from Russia

The UK imported no coal, oil or gas from Russia in January 2023. The total value of UK fossil fuel imports from Russia has fallen since Russia launched its full-scale invasion of Ukraine in 2022. It was £1.34 billion in the year to January 20222
- Energy
Fuel poverty in the UK

Record energy prices in 2022 and 2023 led to concern that more families would be drawn deeper into fuel poverty. How has fuel poverty changed and how do levels and policies vary across the UK?
Households off the gas-grid and prices for alternative fuels

How many households use fuels other than mains gas and how have prices of these fuels changed in recent years?
- Energy
What costs make up an electricity bill?

Household electricity bills are made up of wholesale, network, policy and supplier costs. What are they, and how they are changing?

Rising prices and affected households

High cost of living: Impact on households

This briefing covers how the high period of inflation in the UK from 2021 to 2024 continues to affect household incomes, spending, poverty, savings and debt.
Poverty in the UK: statistics

This briefing explains UK poverty statistics, including historical trends and forecasts, and poverty by employment, tenure, ethnicity, disability and region.
- Work and incomes
Household debt: statistics and impact on economy

This briefing provides statistics and forecasts for household debt, guidance on how to interpret debt statistics and analysis on how debt effects the economy.
Food poverty: Households, food banks and free school meals

This paper provides statistics on household food insecurity, food bank usage and free school meals in the UK, and tracks the impact of rising living costs.
Food banks in the UK

Find out more about food banks and who they help, and some of the reasons why people need to use food banks.
- Environment
- Work and incomes
The impact of high inflation on benefit claimants

Benefit claimants are experiencing a reduction in the real value of their payments at a time when rising inflation is hitting low-income households the hardest.
Food bank demand and the rising cost of living

What effect is the rising cost of living having on food banks and the people who use them?

Inflation and the economy

Rising cost of living in the UK

This briefing covers rising prices including food and energy inflation, Government support, and how the cost of living affects households.
Autumn Budget 2024: Background briefing

Ahead of the 2024 Autumn Budget on 30 October, this briefing looks at the economic situation, economic forecasts and the public finances.
Economic indicators

Economic indicators. (Includes article on Slow Growth and Public Expenditure). House of Commons Library Research Paper 01/82.
- Economic situation

Support for households

Cost of Living Payments: Overview and FAQs

An overview of Cost of Living Payments and the Household Support Fund.
The council tax rebate: How will it work?

A resident who has moved into a property since 1 April 2022 is not eligible for the rebate for that property.
The Social Security (Additional Payments) Bill 2022-23

This briefing paper provides information on the Social Security (Additional Payments) Bill 2022-23, introduced in the House of Commons on 15 June 2022.
Spending of the Department for Work and Pensions on the cost of living measures

An Estimates Day debate on the spending of the Department for Work and Pensions on the cost of living measures will take place in the House of Commons Chamber on Tuesday 5 July 2022.
Autumn Statement 2023: A summary

A summary of the announcements in the 2023 Autumn Statement and an overview of the latest economic forecasts.
Autumn Statement 2023: Reaction

This page provides links to analysis of, and reaction to, the 2023 Autumn Statement from selected think tanks, business groups, political parties and other organisations.
- Economic policy

Rent and housing costs

Housing and the cost of living

This paper considers the impact of inflation on rent and mortgage payments and the Government response.
What is affordable housing?

This briefing explains how affordable housing is defined and looks at trends in housing affordability and the supply of affordable housing.
The rent safety net: changes since 2010

This briefing paper brings together details of the main changes to the rent safety net announced since 2010. It covers the savings achieved through changes to Housing Benefit and the Universal Credit housing costs element, as well as the impact of these policies, and the debate that surrounds them.

Students

Students and the rising cost of living

This briefing explains how the rising cost of living has affected further and higher education students in the UK.
How is the rising cost of living affecting students?

Rent and food prices have increased for students while maintenance loans are lower in real terms compared to last year.
The value of student maintenance support

How have student maintenance support levels changed over time? What support are students eligible for, is it enough and how much are their parents meant to contribute?
- Education
- Higher education

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