Inflation increase demonstrates the scale of the living standards challenge the Government faces

The Work Foundation at Lancaster University responded to the CPI inflation statistics (July 2025) released by the Office for National Statistics. Ben Harrison, Director of the Work Foundation at Lancaster University commented:
“Today’s CPI inflation figures demonstrate the scale of the challenge the Government faces in driving up living standards through this Parliament.
“Inflation has increased to 3.6% on the year and rising food prices will be particularly bad news for low-income workers. Our recent analysis reveals one in six workers (17%) are struggling to pay their bills each month and, despite a period of sustained pay increases, only half of workers (48%) believe wage rises are keeping up with the cost of living.
“These trends appear to be pushing a record number of people into taking on second jobs – often with precarious pay and uncertain hours – to try to make ends meet.
“After a year in office, it’s vital that the Government doubles down on the factors driving many day-to-day expenses to remain so high – such as a broken housing market, water and energy provision and childcare. Only then will workers feel the benefit of Government promises to raise living standards where it matters most – in their pockets.”
Please note: Data is from Shifting Challenges (released 11 July 2025) – using data from a Survation survey of 3,796 workers aged 16-64 living in the UK. The fieldwork took place online between 2 and 12 May 2025).
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