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Inflation leaves £12bn hole in UK government energy support says IFS – business live

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Live, rolling coverage of business, economics and financial markets as Institute for Fiscal Studies says covering half of bill increase is more expensive and Chinese economy shows signs of slowdown

The government needs to spend another £12bn to maintain the scale of support pledged to help families cope with the cost of living crisis as the energy prices continue to soar, according to analysis by the Institute for Fiscal Studies (IFS).

The economics thinktank said that the additional funding will be needed to achieve the £24bn package of aid announced in May, largely because the forecast increase in energy prices over the next year has jumped from 95% to 141%.

As prices of essentials including food, heating and fuel continues to rise, families on low-incomes are facing more uncertainty and pressures. The government is still playing catch up as inflation and the cost of energy continue to spiral upwards. Just achieving what they wanted to achieve back in May will cost an additional £12bn, and a package on that scale will still leave many households much worse off.

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Continue reading…Live, rolling coverage of business, economics and financial markets as Institute for Fiscal Studies says covering half of bill increase is more expensive and Chinese economy shows signs of slowdownThe government needs to spend another £12bn to maintain the scale of support pledged to help families cope with the cost of living crisis as the energy prices continue to soar, according to analysis by the Institute for Fiscal Studies (IFS).The economics thinktank said that the additional funding will be needed to achieve the £24bn package of aid announced in May, largely because the forecast increase in energy prices over the next year has jumped from 95% to 141%.As prices of essentials including food, heating and fuel continues to rise, families on low-incomes are facing more uncertainty and pressures. The government is still playing catch up as inflation and the cost of energy continue to spiral upwards. Just achieving what they wanted to achieve back in May will cost an additional £12bn, and a package on that scale will still leave many households much worse off.EUROPE’S STOXX 600 UP 0.4%FRANCE’S CAC 40 UP 0.4%SPAIN’S IBEX UP 0.2%EURO ZONE BLUE CHIPS UP 0.4%GERMANY’S DAX UP 0.4% Continue reading…