Jamie O’Halloran, Economist at Pro Bono Economics, said:

“Inflation has fallen marginally to 10.5% in the 12 months to December, down from 10.7% in November. These historically high levels are continuing to squeeze household budgets and putting real pressure on the poorest over winter.

“The latest figures from Citizens Advice show there was a 53% increase in the number of people being referred for charitable support and food banks over the course of 2022, compared with the previous year. As the UK now contends with a recession, expected to last until 2024, demand for charity support is unlikely to ease.

“This demand on charity services is twinned with ever-rising costs for organisations as a result of inflation and spiralling energy prices. The recent cut to government support for charity energy bills from April will only exacerbate the challenges facing the sector – with four in 10 charities reporting a spike in their gas and electricity bills.”