Today’s announcement details how the BoE raised rates again by 0.5 percentage points to a total 2.25% – the highest level of borrowing since 2008, confirming that the UK is already in recession.
The bleak outlook could see homeowners hit hard by the Bank of England‘s new base rate of interest to levels last seen in the financial crisis – and the Institute for Fiscal Studies (IFS) warned: “In real terms we expect the median earner to be £500 worse off than they were last year, which is around a 3% net cut in their income.
“High earners – but not very higher earners – will be more than £1,000 worse off which would be a larger increase in percentage terms. Lower earners and those out of work will be more shielded from the rising cost of living, both in cash terms and as a share of income.!
But in more positive news, the Government on Wednesday made three new announcements, with the first seeing more than one million families offered a £100 boost to help with crippling heating costs amid the cost of living crisis and £150 aimed at helping disabled Brits overcome soaring prices.
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