Cost-of-living crisis: Key dates in the coming weeks

·Political Correspondent, Yahoo News UK
·4 min read
British Prime Minister Liz Truss reacts as she speaks to the media at the Empire State building in New York, U.S., September 20, 2022. REUTERS/Toby Melville/Pool
Liz Truss has pledged to tackle the rising cost of living. (Reuters)

The cost of living has continued to rise in September amid a toxic combination of high inflation and energy bills.

Liz Truss has pledged that addressing the crisis will be a key part of her government's agenda after experts warned of an explosion of poverty and destitution this winter.

Here are some key events affecting the cost of living in the coming weeks.

Wednesday 21 September

Business Secretary Jacob Rees-Mogg walks outside Number 10 Downing Street, in London, Britain September 7, 2022. REUTERS/John Sibley
New business secretary Jacob Rees-Mogg will outline energy bill support for non-domestic sectors like schools and hospitals. (Reuters)

New business secretary Jacob Rees-Mogg is expected to announce on Wednesday how non-domestic consumers will be spared some of the pain of rising gas and electricity bills - including businesses, schools, hospitals, and charities.

Businesses are not always able to fix their energy price through fixed deals - with some reporting projected increases in energy costs of more than 500%.

And the £2,500 energy price cap freeze announced by Truss in early September only applies to households.

Thursday 22 September

Governor of the Bank of England, Andrew Bailey, during the Bank of England's financial stability report press conference, at the Bank of England, London. Picture date: Thursday August 4, 2022.
It is expected the Bank of England (BoE) will announced another hike in interest rates on Thursday. (PA)

The Bank of England (BoE) is holding a press conference on Thursday that will lay out its continued response to soaring inflation.

While consumer price index (CPI) inflation dropped in the 12 months to August, it was largely due to falling fuel costs, and food inflation continues to rise - up to 13.1%, higher than July's 12.7%

Read more: UK retail sales slump as inflation and energy bills squeeze households

Markets now expect the BoE to raise interest rates by up to 0.75% from its current 1.75% as it tries put a lid on rising prices, spelling misery for some mortgage holders.

The Bank has previously warned of a recession by the end of the year.

Friday 23 September

Newly installed Chancellor of the Exchequer Kwasi Kwarteng leaving Downing Street, London, after meeting the new Prime Minister Liz Truss. Picture date: Tuesday September 6, 2022.
New chancellor Kwasi Kwarteng will announce a mini-budget in parliament on Friday. (PA)

Chancellor Kwasi Kwarteng is set to announce "The Growth Plan" on Friday, which the government has said will be focused on tackling the cost of living and stimulating economic growth.

He is expected to outline more details of the "Energy Price Guarantee", which the prime minister announced at the start of September to help households with their energy bills and could cost as much as £150bn.

It is expected the 1.25% National Insurance (NI) increase will be axed at a cost of around £12bn per year - with speculation Kwarteng is considering bringing forward planned 1p income tax cuts in 2024.

Read more: UN chief warns global leaders: The world is in 'great peril'

A scheduled increase in corporation tax worth a projected £17bn per year is also on the chopping block.

Mel Stride, chair of the Treasury select committee, on Tuesday urged the government to allow the Office for Budget Responsibility (OBR) to scrutinise the plans.

"There has been a deterioration in our economic outlook since the last OBR forecast in March," said Stride on behalf of the committee.

"There have been significant fiscal interventions since then and we are told there will be further significant interventions including major permanent tax cuts to be announced on Friday.

"Under these circumstances, it is vital that an independent OBR forecast is provided.”

1 October

File photo dated 19/11/14 of an elderly lady with her electric fire on at home.
The 'Energy Price Guarantee' will come into force from 1 October freezing energy bills at £2,500 for two years. (PA)

The freezing of the energy price cap for two years, so that the typical household would pay around £2,500 on its energy bills, begins on 1 October.

Ofgem had previously set a £3,549 energy price cap for October, citing soaring wholesale costs pushing up prices.

Read more: How to save money: 22 easy cost-cutting tips

The government say households in Northern Ireland and households using heating oil - which are not covered under the announcements - will be provided with similar support in the coming weeks.

Autumn

LONDON, ENGLAND - MAY 03: A Universal Credit sign in the window of the Job Centre in Westminster on May 3, 2016 in London, England. The Resolution Foundation, chaired by former Conservative Minister David Willets, has said the Government's benefit reform has
Claimants on means-tested benefits and personal independence payment (PIP) will receive cost of living payments in the coming weeks. (Getty Images)

A new round of cost of living payments outlined in May will begin to arrive in people's bank accounts from September.

Six million claimants of personal independence payments (PIP) should receive £150.

Those on means-tested benefits should also be receiving their second, £325 cost of living payment in the coming weeks.

Watch: Spending more on military aid to Ukraine will cut energy bills, minister says