The Chartered Institute of Payroll Professionals
News On Line
Bank rate held at 5.25% Published: 20 September 2023 Emailed: 27 September 2023
The Bank of England’s Monetary Policy Committee (MPC) has elected to have the base rate remain at 5.25% . This brings to an end 14 successive increases.
The MPC, however, were divided on this decision, with five members voting to keep the rate the same and four members instead preferring an increase of 0.25 percentage points.
This announcement means that HM Revenue and Customs’ (HMRC’s) late payment interest fee will also remain steady.
The next announcement from the Bank of England will be due on 2 November 2023, just under three weeks before the autumn statement is due.
Back to contents
CPI inflation continues to slow Published: 21 September 2023 Emailed: 27 September 2023
The Office for National Statistics (ONS) economy data is out for August 2023 and the rate of inflation has slowed further to 6.7%, this is down from 6.8% in July. Remember, this means that prices are still rising, just slower than they were last year. With the bank rates next due to be considered tomorrow (21 September 2023) it is being speculated that this could remain the same in light of stabilising inflation. The Bank of England’s Monetary Policy Committee (MPC) will announce their decision on their website.
Back to contents
Life on low pay Published: 28 September 2023 Emailed: 4 October 2023
The Living Wage Foundation has released the report ‘ Life on Low Pay as Inflation Begins to Ease’ . This is the fourth time the Living Wage Foundation has run the ‘Life on Low Pay’ survey to track the real -life impact of being paid less than the real Living Wage. Costs remain high even as inflation begins to ease, leaving many low paid workers facing ongoing financial hardship. It has been reported that while workers across the income distribution are feeling the squeeze, the situation is particularly challenging f or the UK’s 3.5 million low paid workers. From the research carried out, this year’s polling shows that 50% of workers are worse off than a year ago, with 65% reporting it was because of the increased cost-of- living.
Below are the key findings from the report:
Financial hardship
• 39% of low paid workers reported regularly skipping meals for financial reasons and falling behind on household bills respectively, both down from 42% in August 2022 • the proportion of low paid workers that reported being unable to heat their homes for financial reasons stayed level at 32% over this period, as did the proportion of low paid workers falling behind on rent or mortgage payments (27% in 2023, 28% in 2022) • the incidence of low paid workers getting a pay day loan to cover essentials fell slightly from 24% to 21% between August 2022 and August 2023. Income after essential expenses
cipp.org.uk
Page 209 of 314
Made with FlippingBook - Online magazine maker