Poor Brits hit hardest as inflation goes up by 10.9% - but only 7.9% for rich households

Soaring inflation is ­causing untold misery for Britain’s poorest families as they struggle to survive.

The 3.1 million ­worst-off households are being battered by cost of living prices going up faster than anyone else’s.

It means that while inflation has hit a 40-year high of 9% overall, for the poorest it has actually gone up by 10.9%.

But for the richest 10% of households it is 7.9%, according to research by the Institute for Fiscal Studies.

Rishi Sunak is still refusing to help ease the cost of living crisis by resisting demands for a windfall tax on energy giants.

But the millionaire ­Chancellor sparked fury tonight by telling business chiefs he would cut their taxes. Pensioner Sheila Correll, 79, told how spiralling inflation is leaving her unable to heat her home in Horncastle, Lincs.

The retired legal secretary, who now barely gets by on her £184 a week pension, is shocked inflation is more for her than wealthy Mr Sunak.

Sheila, whose gas and ­electricity bill leapt from £38 to £93 a week, said: “It’s grossly unfair. We are among the worse off, but no one in Parliament seems to care.

“The ­Government haven’t got a clue about the reality of living on £184 a week while the wealthiest have the lowest rate of inflation.”

Households in the IFS study included a couple scraping by on an income, after tax, of less than £287 a week, or a family of four with less than £401 a week for all their bills and outgoings. But the richest homes included a couple with an after-tax income of over £1,163 a week or a family with £1,623 a week.

Poorer households have to shell out a bigger chunk of their income on energy and food, both of which have soared.

Goods that were ­reasonably cheap are now so expensive, but incomes have not gone up in line with prices so they cannot afford to buy as much.

Many are now turning to foodbanks just to survive.

Whereas richer families who buy dearer goods can drop to cheaper items.

Citizens Advice said “the warning lights could not be flashing brighter”.

Chief executive Dame Clare Moriarty added: “There are desperate stories behind these figures. People washing in their kitchen sinks because they can’t afford a hot shower, parents skipping meals to feed kids, disabled people who can’t afford to use vital ­equipment because of soaring energy bills.”

Action for Children director of policy and campaigns Imran Hussain said: “The levels of financial hardship our staff are seeing are among the worst they can remember and are robbing too many children of the bright futures they deserve.

“Many low-income families are struggling to pay the bills and cover the absolute basics, with some falling into debt.”

The IFS said the poorest homes spend 11% of their total budget on gas and electricity, compared to 4% for the richest ones. Rising food costs is another factor, with the ONS revealing prices jumped 6.7% in the year to April, the fastest for 11 years.

IFS research economist Heidi Karjalainen added: “State benefits only increased by 3.1% in April. This means big ­real terms cuts to the living ­standards of many of the poorest households.

“We are likely to be in a prolonged period during which poorer households are facing inflation rates higher than the headline figures would suggest.” Prospect union general ­secretary Mike Clancy said: “These eye-watering ­inflation figures will leave workers making impossible choices about what they cut from family budgets just to make ends meet, while pay inequality widens with the top 1% of earners seeing sharp increases in pay last month.”

TUC General Secretary Frances O’Grady added: “Conservative MPs keep telling families there is no cost of living crisis, it’s their own fault for not working more hours or having the wrong diet.

“But with inflation so high, the crisis is cold, hard reality.

“And families are desperate for the Government to help with an emergency budget.

“And we urgently need a windfall tax on oil and gas.”

Mr Sunak has tried to blame the cost of living crisis on global events, such as soaring energy prices and the Ukraine war.

But other ­countries have kept inflation rates down. Italy is at 6%, France 4.8% and ­Japan just 1.2%. And while the ­Chancellor insists on telling hard-up Brits there is little he can do to help, or makes empty promises, he was last night a lot more helpful to business chiefs.

Mr Sunak told the CBI dinner he would cut their taxes this autumn and said: “We are on your side.

“We need you to invest more, train more, and innovate more.

“In the autumn Budget we will cut your taxes to encourage you to do all those things.”

Lib Dem Christine Jardine MP said: “Rishi Sunak is ­promising tax cuts for ­businesses, while hiking taxes for families. It shows he’s completely out of touch.”

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