The Work Foundation at Lancaster University responded to the CPI inflation statistics (October 2025) released by the Office for National Statistics. Rebecca Florisson, Principal Analyst at Lancaster University commented:

“Cost of living pressures are persisting for workers and their families across the UK as inflation is at its joint highest level since January 2024 at 3.8%.

“Low-income workers, in particular, are feeling gloomy about their living standards a year into the Parliament. Food inflation has slowed but groceries are still 4.5% more expensive on the year, and the rising cost of essentials is particularly bad news for low-income households. The combination of years of wage stagnation and the cost of living crisis means only 42% of low paid workers say their pay is keeping up with costs – compared to 73% of higher paid workers.

“With inflation nearly at double the Bank of England target, it appears unlikely that rate setters will reduce interest rates in November, but all eyes will be on the Budget next month. The Chancellor needs to have low-income households at the front of her mind as she delivers her speech.

“Despite pressure to reduce welfare spending, the Government must protect the most vulnerable people by ensuring benefits continue to be linked to inflation. The Chancellor should prioritise boosting living standards in the years ahead because the alternative would push more of those out of work into poverty, forcing them to take on precarious and poorly paid work, while ultimately remaining reliant on the welfare system.”