The cost of living: rising food prices, rising debt

As the cost of living remains close to its highest level for 40 years, the final episode in our series on the cost of living crisis asks who is paying - and how.

Rebecca McDonald, chief economist at the Joseph Rowntree Foundation tells host Darren Jones MP that many families are struggling to meet basic costs such as food. A recent survey by the social change organisation revealed that 2.4 million households had borrowed on credit cards to pay essential bills in the past few months. Bank of England increases in the base borrowing rates have pushed up interest, increasing the costs of debt. Although the Government should get credit for the support given to low income households so far, she asks why the safety net of social security has not been adequate in the current ‘economic shock’ and calls for support for people on low incomes to be reassessed to provide a decent quality of life.

Turning to the Chair of the Environment, Food and Rural Affairs Committee, Sir Robert Goodwill MP, Darren asks what’s pushing up the cost of food and they consider the impact on the farming sector. The Committee recently published a report on food security.

Harriett Baldwin, Chair of the Treasury Committee describes the ‘pernicious’ effect of inflation as a ‘tax on the poorest in society.’ She discusses recommendations to spread cost of living payments across winter months to avoid ‘cliff-edges’ for those on low incomes.

This episode airs as Government borrowing hit its highest November level since records began in 1993, according to the Office for National Statistics. However, the JRF’s chief economist said it was necessary to  support households and the economy so that things don't get worse and a better recovery is possible.

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