Responses to November Inflation statistics

The Chancellor's response to ONS inflation statistics for November 2023 is below.

Chancellor of the Exchequer Jeremy Hunt said:

“With inflation more than halved we are starting to remove inflationary pressures from the economy. Alongside the business tax cuts announced in the Autumn Statement this means we are back on the path to healthy, sustainable growth. But many families are still struggling with high prices so we will continue to prioritise measures that help with cost of living pressures.”

National Debt Line

The Office for National Statistics has today published its latest Consumer Prices Index, which shows the rate of inflation at 3.9 percent in the 12 months to November 2023.

Findings from National Debtline reveal the scale of the impact of the cost of living on households this Christmas:

• One in seven (14 percent) UK adults say they won’t be able to put the heating on as much as they need this December. For people in debt this rises to one in five (21 percent). 
• 2.7 million people (5 percent) are having to choose between buying food or presents.
• 14.4 million people who celebrate Christmas (30 percent) are planning to cut back on the number of presents they buy. This rises to 43 percent for people in debt.
• 6.1 million (13 percent) are only planning to buy presents for children, this rising to more than one in six (18 percent) for people in debt. 

National Debtline is urging anyone worrying about money to talk to one of their advisers.  The charity has released a video highlighting the impact seeking debt advice can have for people experiencing financial difficulty.

David Cheadle, Acting Chief Executive of the Money Advice Trust, the charity that runsNational Debtline, said:

“This latest drop in inflation is welcome – but for millions of households the pain caused by sustained high prices is set to continue.

“Our findings show the scale of the impact with 6.5 million people struggling to heat their homes as much as they need this Christmas.  With energy prices rising in January and energy arrears at a record £2.9 billion, for the millions of people trapped in debt, the situation is only going to get harder. 

“I would urge anyone worried about money this Christmas to speak to National Debtline as soon as possible. Dedicated support is also needed urgently to support people in unaffordable energy arrears. The Government must act by bringing in a temporary Help to Repay scheme via payment matching and write off.”

Unite leader slams corporate profiteers as inflation figures published

Commenting on today’s inflation figures, Unite general secretary Sharon Graham said:

“Headline inflation might be slowing but workers know their wages aren’t going as far as they did two years ago. Even the competition regulator now admits what Unite has said all along: that firms have been exploiting the cost of living crisis to raise prices excessively. It’s time the government and Bank of England tackled the rampant profiteering in our economy to get inflation under control.”

Low-income families have little to celebrate as food inflation remains high in run up to Christmas - JRF

According to JRF’s October cost-of-living tracker:  

• 5.7 million low-income families (49%) have reduced their spending on gifts for family, due to cost during the cost-of-living crisis (since April 2021). A further 1.8 million low-income families (16%) said that they hadn’t done so yet, but were planning to in the coming months. 
• In October 2023, 2.4 million low-income families (20%) reported currently holding a loan or credit that they had originally taken out help to pay for gifts or special occasions like Christmas or birthdays 
• In October 2023, 8.5 million low-income families on Universal Credit (73%) experienced food insecurity 

Responding to today's latest CPI inflation rate, 3.9%, and food price inflation at 9.2%, JRF Senior Economist Rachelle Earwaker said: 

“Millions of families will have little to celebrate at Christmas this year. Food price inflation remains high, despite the bigger than expected fall in headline inflation. Many families have spent the past year skipping meals and cutting down on food to try and cope with higher prices. Over two million families have already taken on debt to pay for birthday gifts and other occasions. As Christmas approaches, many more will face the reality of not being able to afford presents or a Christmas dinner this year.  

“It’s not right that our social security system, which is meant to protect all of us when we fall on hard times, doesn’t give families enough to afford the essentials. No one should feel ashamed, stressed or anxious because of the cost of Christmas. All political parties must commit to introducing an ‘Essentials Guarantee’ to Universal Credit to ensure everyone has a protected minimum amount of support to afford the essentials.” 

Notes to Editor 

1. JRF’s cost of living tracker is the fifth in a series of large-scale studies of over 4000 households in the UK on low incomes (the bottom 40%) conducted by Savanta, focusing on the impact of the cost-of-living crisis. This survey was carried out between 12 October and 31 October, 2023. 

Rachel Reeves, Labour’s Shadow Chancellor of the Exchequer, responding to the latest inflation data, said:

“The fall in inflation will come as a relief to families. However, after thirteen years of economic failure under the Conservatives working people are still worse off. 

“Prices are still going up in the shops, household bills are rising and more than a million people face higher mortgage payments next year after the Conservatives crashed the economy.

“Only the Labour Party under Keir Starmer’s leadership has a long-term plan to make working people better off.”

TUC – household budgets will remain under “intense pressure”

• UK still has highest inflation in the G7

Responding to today’s (Wednesday) figures showing CPI inflation slowing to 3.9% and RPI inflation slowing to 5.3%, TUC General Secretary Paul Nowak said:

“The Conservatives have delivered 13 years of dismal growth and living standards.

“Today’s inflation figures will provide scant relief for hard-pressed families. Prices are still going up – just a bit more slowly.

“Household budgets remain under immense pressure. And many families will struggle with the cost of Christmas with food and energy bills sky-high.

“Britain cannot afford the Tories.”