The Prime Minister will release the Office for Budget Responsibility forecast on November 23, despite calls for an earlier release of the report.
Liz Truss and chancellor Kwasi Kwarteng are rejecting calls to publish the tax body’s assessment despite the market turmoil.
Ms Truss and Mr Kwarteng held an emergency meeting this morning with Richard Hughes, chairman of the OBR, which appeared to last less than 50 minutes.
Shortly after the meeting with No 10, the OBR said it would deliver “an initial forecast” on October 7 on “the economic and fiscal outlook and the impact of government policies”.
In a statement, the OBR said: “The forecast will, as always, be based on our independent judgment about the economic and fiscal outlook and the impact of government policies.”
Kwarteng unveiled a series of tax cuts last week in a fiscal state that fell short of the OBR’s forecasts. The forecaster said he had offered to prepare a draft for the new chancellor in time for the mini-budget, but it was not accepted.
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One in five are looking for better paying work to cope with rising costs
Around one in five adults are looking for new work to maintain their standard of living as costs rise, new data shows.
Almost everyone (91%) surveyed by the Office for National Statistics (ONS) said their costs had risen in the past year.
As a result, 19% of working adults said they were looking for a job that pays more money, which could include a promotion or moving to another employer, the ONS said.
Additionally, 15% said they are working extra hours at their jobs because costs are rising and they need more money. About 4% said they had taken on another job to help cover their costs.
The survey found that 7% will work more often to save on their energy bills.
The research was published a day before the new price cap on energy bills comes into force.
Under the cap, households will pay 34p. per unit of electricity and 10.3 p. per unit of gas they use.
For the typical household (2.4 people as calculated by Ofgem), this will mean bills of £2,500 a year. But of course that depends on how much power they use.
The calculation is based on 2,900 units of electricity and 12,000 of gas, plus the ongoing charges that all households pay regardless of how much they use.
But the ONS data contains at least some light at the end of the tunnel.
While 91% of people said their costs have increased in the past year, only 73% said they had increased in the past month, indicating that households are seeing what they think they are having at least some respite.
Maryam Zakir-Hussain September 30, 2022 5:10 p.m
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Dignity Funeral Home considers ‘fuel surcharge’ for cremations on top of high energy costs
Funeral group Dignity said it is considering introducing a surcharge on cremation services to cushion the impact of higher fuel costs as it announced losses of nearly £50m.
The group, which owns more than 800 funeral homes in the UK, said its revenue had fallen by £8.6m as a result of the lower post-Covid death rate.
There were almost 400,000 fewer deaths in the first three months of this year compared to the same period last year, Dignity said.
It operated at a loss of £48m in the first half of the year, a big drop from the £41m profit reported a year ago.
The funeral home considers a “fuel surcharge” for cremations on top of energy costs
The group, which owns more than 800 funeral homes in the UK, said its revenue fell by £8.6m as a result of a lower death rate in the UK.
Maryam Zakir-Hussain September 30, 2022 4:45 p.m
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Private tenants abandon Tories amid doubts over promises of new powers for tenants
Private tenants are ditching the Tories amid fears Liz Truss is watering down promises of new powers to challenge bad landlords, a poll has found.
One in three tenants who voted Conservative in the 2019 general election, a total of 400,000 people, now plan to vote for another party, the survey found.
The analysis suggests the so-called “rent wall” could deprive the Tories of key seats such as Hastings and Rye, Milton Keynes North and Gloucester, helping to push them out of power.
Our deputy political editor Rob Merrick has more:
Private tenants abandon Tories amid doubts over promises of new powers for tenants
Liz Truss warned ‘rent wall’ set to deprive Tories of key swing seats, if promises are kept
Maryam Zakir-Hussain September 30, 2022 4:27 p.m
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Employers have been urged to offer financial support to staff
Employers are being urged to offer financial support to their staff as new research suggests more than half of workers believe they are underpaid amid the cost of living crisis.
An Indeed survey of 2,500 workers by workplace found that those in the health and medical industry, hospitality and leisure, and the legal system were most likely to feel they were underpaid.
About one in eight respondents said they have asked for a raise and one in 10% have applied for a new job.
The results indicated that 25- to 39-year-olds, typically those with young families and in earlier stages of their careers with less savings, were feeling the pressure the most.
Indeed’s Matt Burney said: “While the world of work may have changed dramatically since the pandemic, pay remains the most important driver for workers, but our report shows that many workers feel underpaid.
“This perception could worsen as high inflation continues to eat away at people’s incomes and as the macroeconomic situation looks less secure.
“Encouragingly for workers, we see signs that employers are responding to these challenges by offering a range of support, from increased flexibility, overtime, vouchers and financial advice to pay rises and benefits.
“With no end in sight to the rising cost of living, employers will need to carefully navigate financial viability with pay and support packages that balance fiscal and recruitment challenges over the coming months.”
Maryam Zakir-Hussain September 30, 2022 4:10 p.m
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The French government “was worried about Britain”, says Macron’s finance minister
The French government is “concerned” about the economic situation developing in the United Kingdom, Emmanuel Macron’s finance minister has said.
Bruno Le Maire, Chancellor Kwasi Kwarteng’s opposite number across the channel, said the UK was paying the price for leaving the EU.
And he said the reaction to Friday’s budget showed the danger of making “dramatic” turns in economic policy.
It comes after financial markets pounded the pound and public debt after the UK government announced steep unfunded tax cuts.
Our policy correspondent Jon Stone has more:
The French government “was worried about Britain”, says Macron’s finance minister
Bruno Le Maire is the French opposite number to Chancellor Kwasi Kwarteng
Maryam Zakir-Hussain September 30, 2022 3:55 pm
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Disabled people ‘skipping meals’ ahead of energy price cap rise, charity says
Ahead of tomorrow’s energy price cap rise, a disability equality charity has reported that disabled people are taking “drastic action” such as skipping meals.
James Taylor, director of strategy at Scope, said: “Despite the government’s energy price guarantee, this latest rise still means huge price increases for disabled people and their families, everywhere of the country.
“Energy costs have doubled in a year. We have been inundated with calls from disabled people who have cut back on everything they can. They’re taking drastic actions like skipping meals, cutting back on washing and turning off their fridges, and it’s still not enough.
“The price cap doesn’t limit how much people have to pay on their bills, and this increase will put many people over the edge. The £150 disability payment won’t touch the sides.
“Life costs more when you’re disabled, but the new government chose to ignore that fact in last week’s Budget.
“We need targeted support for disabled people to get through this crisis. The government should double Disability Payment and provide another cost of living payment to those on the lowest incomes.”
Maryam Zakir-Hussain September 30, 2022 3:40 p.m
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Experts urge Prime Minister to correct claims households will pay no more than £2,500 in energy bills
Experts have called on Liz Truss to correct her claims on TV and radio that no family will have to pay more than £2,500 in energy bills each year as the new cap comes into force on Saturday.
Meanwhile, regulator Ofgem has urged people to take a photograph of their energy meters before the switch, but said they do not have to send the readings straight away.
The Prime Minister has repeatedly and incorrectly said that no household will pay more than the Energy Price Guarantee over the next year.
But the guarantee is based on how much energy a family uses, with half of all households likely to face bills of more than £2,500.
Adam Scorer, chief executive of fuel poverty charity National Energy Action, said: “It’s simply not true that bills are capped at £2,500 and it’s vital that people understand that.
“The energy price guarantee is not a warm-up buffet. If you use more, you pay more.
“Millions on tight budgets don’t fit the ‘average’ label. They may use more energy than average because they have medical problems, larger families or homes that are really hard to heat. They can face bills well in excess of £2,500 .
Money saving expert Martin Lewis added that there is “confusion” about how the limit works.
Under the cap, households will pay 34p. for each unit of electricity and 10.3 p. per unit of gas they use.
The typical household, containing 2.4 people, uses 2,900 units of electricity and 12,000 of gas according to Ofgem calculations.
Only households that use that much energy will see bills of £2,500; those who consume more will pay more and those who consume less will pay less.
Maryam Zakir-Hussain September 30, 2022 3:23 p.m
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