2021–present United Kingdom cost-of-living crisis

In late 2021, the prices of many essential goods in the United Kingdom began increasing faster than household incomes, resulting in a fall in real incomes. The phenomenon has been termed a cost-of-living crisis. It is due in part to the economic impact of the COVID-19 pandemic, including a global surge in inflation, as well as the economic instability caused by Brexit and the Russian invasion of Ukraine.

While all in the UK are affected by rising prices, the crisis most substantially affects low-income persons. The British government has responded with measures including grants, tax rebates, and subsidies to electricity and gas suppliers. Regular pay began to outpace inflation beginning in May 2023, but living costs have remained at elevated levels, and have continued to increase faster than headline inflation into 2025.

This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.