Millions of people are facing increasing financial difficulties this winter due to the cost of living crisis. The Bank of England has warned the UK is facing the worst recession since the financial crisis with inflation, which already hit a 40-year high of 9% in June this year, expected to hit 13.3% in the last three months of 2022 and remain at high levels throughout 2023.
The Bank forecasts the UK will fall into recession this year and the economy is likely to keep shrinking until the end of next year - the longest economic downturn since the 2008 financial crisis. Many households are already struggling to cope with rising costs, something which will likely worsen in October with the energy price cap set to rise a whopping 80% from £1,971 to £3,549. You can read more about that here.
The government has already rolled out a number of financial support schemes to help those hardest hit by the crisis. More than seven million people on the lowest incomes received a £326 cost of living payment in July, with a second payment expected by the end of October. There is additional support for those with disabilities and millions of pounds have also been distributed through local councils.
