The UK energy regulator stated that the United Kingdom should study the possibility of launching a social tariff for domestic energyaccording to which the most vulnerable people and those with the least ability to pay would have to pay a lower price for their electricity as a result of the acceleration in energy prices that the country had been going through.
The Finance Minister, jeremy huntwelcomed the reduction, but warned that “the fight is far from over”.
“High inflation strangles growth and causes pain to families and businesses, which is why we must stick to the plan to cut inflation in half this year, reduce debt and grow the economy“, he added.
The UK narrowly escaped recession at the end of 2022according to data released last week, but the threat of a long contraction persists over its economy in 2023.
The United Kingdom registered zero growth in the fourth quarter of last year, after a contraction of 0.3% in the third, allowing it to avoid a technical recession. Throughout 2022 GDP increased 4.1%after 7.4% the previous year.
The inflation it spiked globally last year when Russia’s invasion of Ukraine sent energy and food prices soaring. In the UK it exceeded 11% in October.
This triggered a cost-of-living crisis, which in turn is causing the largest wave of strikes in the country in more than a decade to demand better wages, relying on a lack of labor that kept unemployment at 3.7% in December.
Source: Ambito
