Posted May 5, 2022
The Bank of England Monetary Policy Committee has today voted to increase interest rates to 1 percent.
“Today’s rate rise, while small in scale, is a potential source of worry for people with significant amounts of borrowing, when taken in the context of rising costs across the board. Whilst the ongoing impact of higher inflation is likely to be felt much more strongly, we know that any small increase in costs can push households with stretched budgets into difficulty.
“It is important that any increases in the cost of borrowing are not passed on to the many households already struggling to cover essential costs.
“With no let-up in sight from rising energy, fuel and food prices, more support is needed now for the many households already caught at the sharp end of the cost of living crisis. Significantly uprating benefits would go a long way in helping people whose incomes are not keeping pace with rising costs, along with targeted support for those unable to afford their bills.”
National Debtline offers free, independent debt advice at www.nationaldebtline.org.