The Government understands that people across the UK are worried about the rising cost of living and are seeing their disposable incomes decrease as they spend more on the essentials.
Monetary policy is the responsibility of the independent Monetary Policy Committee (MPC) of the Bank of England. Since independence Consumer Prices Index inflation has averaged around the MPC’s 2% target.
In May, the Government announced over £15bn of additional cost of living support, targeted at those with the greatest need. As a result, millions of vulnerable households will receive at least £1,200 of support this financial year, with the vast majority of households receiving at least £550. This package builds on the over £22bn announced previously, with government support for the cost of living now totalling over £37bn this year, equivalent to 1.5% of GDP.