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Money Box

Inflation and the cost of living crisis

Money Box

BBC

Business

4.2825 Ratings

🗓️ 23 April 2022

⏱️ 25 minutes

🧾️ Download transcript

Summary

Inflation is the rise in the price of everything we buy. This week the Office for Budget Responsibility predicted prices would rise more than 7% this year, peaking at nearly 9% this winter. We hear from Isabel Stockton of the Institute of Fiscal Studies, on tax changes and the worst inflation most people have ever seen.

Some very vulnerable people are facing an even worse cost of living crisis than the rest of us. The amount of money that working age disabled adults are allowed to keep from their benefits - the "minimum income guarantee" - has been frozen for 7 years, even though prices have risen. Money Box reporter Dan Whitworth investigates. And we hear from a family affected, and from Jackie O'Sullivan, Executive Director of Advocacy for the learning disability charity Mencap.

The Chancellor is raising the income level at which employees start paying National Insurance. From July, anyone earning less than £12,570 will not pay NI contributions. How will this affect your state pension at retirement age?

Money Box has reported sad stories of people who are manipulated by thieves into investing in what they thought was cryptocurrency. Most retail banks follow a code intended to ensure that victims are refunded where they are groomed into transferring their savings to crooks. However, banks often refuse to refund the money stolen by these psychological techniques. But one bank, TSB, refunds almost everyone. We hear from Paul Davis, TSB's Director of Fraud Prevention.

And a major funeral plan provider, Safe Hands, goes bust with too little money to honour its promises. What faces their 45,000 customers now?

Presenter: Paul Lewis Producer: Paul Waters Reporter: Dan Whitworth Researcher: Marianna Brain Editor: Emma Rippon

Transcript

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0:00.0

You are about to listen to a BBC podcast and I'd like to tell you a bit about what goes into making one.

0:06.5

I'm Sadata Sese, an assistant commissioner of podcasts for BBC Sounds.

0:11.2

I pull a lot of levers to support a diverse range of podcasts on all sorts of subjects,

0:16.0

relationships, identity, comedy, even one that mixes poetry, music and inner city life.

0:22.4

So one day I'll be helping host develop their ideas, the next fact-checking, a feature,

0:28.3

and the next looking at how a podcast connects with its audience, and maybe that's you.

0:33.6

So if you like this podcast, check out some others on BBC Sounds.

0:39.5

BBC Sounds, music, radio podcasts.

0:43.3

Hello, welcome to this Moneybox podcast.

0:46.3

The disabled man who's lost thousands of pounds because his income was frozen for six years.

0:52.0

Will the rise in the national insurance threshold make it harder to qualify

0:55.3

for a state pension? As the number of frauds involving cryptocurrency grows, should banks ban

1:01.7

all transfers to crypto platforms? And a major funeral plan provider goes bust with too little

1:08.2

money to honour its promises. But first, inflation. One forecast this

1:13.6

week suggests that a £10 note may be worth little more than £9 by the end of the year,

1:18.6

as the price of everything we buy from electricity to food, from telephone bills to petrol, rises.

1:24.6

Every forecast of the economy says the prospect for inflation is getting worse, and this

1:29.0

week the Office for Budget Responsibility, which advises the Chancellor, predicted that prices

1:33.8

would rise overall more than 7%, with the annual rise peaking at nearly 9% by the winter. What's

1:40.7

causing it, can the Government or the Bank of England do anything to stop the worst inflation that most people have ever known?

1:47.7

With me as Isabel Stockton Research Economist at the Institute for Fiscal Studies.

1:52.4

Isabel Stockton, the Chancellor, did mention his inflation in his speech, but just as describing where it was, not something he could do anything about.

...

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