In response to today’s release of ONS consumer price inflation statistics, Jamie O'Halloran, Economist at Pro Bono Economics, said:

“Inflation in the UK is now at a 30-year high having soared to 5.4% in the year to December. The cost of food was the single largest contributor to inflation between November and December, rising by 0.18 percentage points.

“This is fuelling a cost of living crisis that will leave those on low incomes struggling to make ends meet and looking increasingly to foodbanks and other charities for support. The charities running these vital resources are set to be stretched further as demand for their services surges.

“With inflation rising even faster than expected, fears are mounting in the charity sector as it wrestles with its own financial pressures brought on by the pandemic and exacerbated by inflation. As costs continue to rise, the overall income of charities will struggle to keep pace. It is estimated that a £100,000 donation made in 2021 will be worth £94,000 in 2023.

“Charity staff will also feel the strain of inflation as they face the prospect of their salaries reducing in real terms. This poses a risk of significant staff churn in the sector at exactly the same time as rocketing demand for frontline services.”

Contact PBE's press office here.