Jamie O’Halloran, Economist at PBE, said:

“Inflation is now at its highest level for 30 years and is driving one of the worst cost of living crises for decades. Millions in the UK are seeing their pay packets eroded each month as regular wages fail to keep up with an increasing rate of inflation that now stands at 7%.

“With inflation driven by staples such as food and fuel, it is those on the lowest incomes who are being hit hardest by this crisis. We estimate that the country’s poorest households, those in the bottom 20%, would have to spend £250 more on housing and fuel and £131 more on food to maintain the same level of consumption seen in 2019.

“The limited support for the poorest families shown by the government to date means the UK’s charities will be called upon in even greater numbers to support those struggling with the growing cost of living, as well as the related debt and mental health problems that accompany increasing poverty.

“It is paramount policymakers are alive to the ever-growing demands placed on the charity sector, which is also having to cope with staff burnout, rising costs and the falling value of donations as a result of inflation."

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