UK's cost-of-living gap between rich and poor hits record

THE gap in inflation experienced by the richest and poorest households in the UK has expanded to its widest level in at least 16 years, according to a report by the Resolution Foundation think-tank.

Soaring energy bills, as well as higher food costs, have sent the UK's overall inflation rate to a 40-year high of 9 per cent. But headline inflation for the poorest tenth of households is even higher at 10.2 per cent because they spend more of their income on energy bills, according to an analysis by the group.

The inflation gap between the poor and the rich - who face a lower rate of 8.7 per cent - is the widest since records began in 2006, the foundation said.

"As the Government prepares a fresh round of cost-of-living support, it is clear where it's needed most," said Jack Leslie, senior economist at the foundation. "The Chancellor should prioritise significant targeted support at low-and-middle-income households."

The foundation is calling for targeted support to be directed at poorer households through the existing benefits system by increasing universal credit and the state pension, or by boosting employment allowances, winter fuel payments or the warm homes discount. BLOOMBERG