Brits to see ‘the benefit in their bank accounts’ as inflation begins to come down, says Rishi Sunak

15 August 2023, 13:54

Rishi Sunak met with staff during a visit to Milton Keynes University Hospital
Rishi Sunak met with staff during a visit to Milton Keynes University Hospital. Picture: Alamy

By Asher McShane

Rishi Sunak has said people can expect to ‘see the benefit in their bank accounts’ as inflation comes down.

The prime minister said there is ‘light at the end of the tunnel’ for people struggling with the cost of living.

Speaking on a hospital visit in Milton Keynes, Mr Sunak said: “It’s important that we stick to the plan. The plan is working. I think there is light at the end of the tunnel.

“If we get through this, people will really start to see the benefit in their bank accounts, in their pockets, as inflation starts to fall.”

The prime minister posed for selfies with hospital staff
The prime minister posed for selfies with hospital staff. Picture: Alamy

His comments come after figures showed the rate of UK unemployment increased in the three months to June - while pay grew at the fastest rate since records began.

The Office for National Statistics (ONS) said the unemployment rate hit 4.2% during the quarter, up 0.3 percentage points from the previous three-month period.

It is the highest since the three months to October 2021, the ONS said, and brings the measure above pre-pandemic levels.

The statisticians said regular pay, which excludes bonuses, reached 7.8% compared to a year earlier.\

Read more: Drivers' fury as TfL set to impose toll on the Blackwall Tunnel - as Sadiq Khan risks another clash with motorists

Read more: EU rejects British request to discuss deal to send migrants back to Europe - despite more Channel deaths

He said there is 'light at the end of the tunnel' for savers
He said there is 'light at the end of the tunnel' for savers. Picture: Alamy

"This is the highest regular annual growth rate we have seen since comparable records began in 2001," they said.

In real terms, regular pay rose 0.1% for the year when adjusting for Consumer Prices Index including owner occupiers' housing costs (CPIH) inflation.

It is the first time since October 2021 that real wages have increased, the ONS added.

But when adjusting for Consumer Prices Index (CPI) inflation, the measure was still 0.6% down on the year. That is the smallest reduction since November 2021.

The data shows the number of payrolled employees increased by 97,000 to 30.2 million in July, although the ONS said this is a "provisional estimate and is likely to be revised when more data are received next month".

Chancellor Jeremy Hunt said: "Thanks to the action we've taken in the jobs market, it's great to see a record number of employees.

"Our ambitious reforms will make work pay and help even more people into work - including by expanding free childcare next year - helping to deliver on our priority to grow the economy."

ONS director of economic statistics Darren Morgan said: "The number of unemployed people has risen again while the number of people working has fallen back a little.

"This is mainly due to people taking slightly longer to find work than those who started job hunting in recent months.

"The drop in those neither working nor looking for work is mainly among those looking after their family or home.

"Meanwhile the number of people prevented from working by long-term sickness has risen again to a new record.

"Job vacancies have now fallen over a quarter of a million since this time last year. However, they remain significantly above pre-Covid levels.

"Earnings continue to grow in cash terms, with basic pay growing at its fastest since current records began.

"Coupled with lower inflation, this means the position on people's real pay is recovering and now looks a bit better than a few months back."

More Latest News

See more More Latest News

Officers were called to reports of a number of people stabbed at East Street Market in Walworth on Sunday

Man cries ‘it’s the end of my life’ after being fatally stabbed in London market ‘machete’ attack

Harry has paid tribute to veterans

Prince Harry pays heartfelt tribute to 'fellow veterans' in rare statement to mark Armistice Day

Klopp with David Coote at a Liverpool v Burnley game in 2020

Premier League ref David Coote suspended after 'launching X-rated rant against Liverpool and Jurgen Klopp'

Oxford Street Security In London

'I was held at knifepoint': One in six shopworkers assaulted by customers

A bride was left devastated after only five guests attended her wedding despite her sending invitations to 75 people

Bride left devastated after no one turns up to her wedding

The 'skip forward' voyage will last up to four years.

Cruise company offers four-year 'skip forward' voyage for Americans to avoid Donald Trump's presidency

Derriford Hospital

Pensioner, 87, dies after being blown off her feet by helicopter after hospital visit

The identity of the fan who mocked the death of George Baldock has been revealed

Sheffield Wednesday fan who mocked death of George Baldock named as police launch probe

Patrick Ruane encouraged violence towards Prof Sir Chris Whitty

Covid denier jailed for five years after suggesting ‘whacking’ Chris Whitty with a rounders bat

Justin Welby’s position at the Church of England has been described as ‘untenable’ by a senior member of the church

Archbishop of Canterbury Justin Welby under growing pressure to resign over Church abuse scandal

Shoppers queued for hours to get themselves a bargain in the sale

Top of the pots: Le Creuset sale sparks four-hour long queues as police called in to manage crowds

Patrick Ruane, 55, was found guilty at the Old Bailey of two charges of encouraging terrorism

Covid conspiracy theorist jailed for terrorism offences after encouraging violence against Chris Whitty

Driving without insurance is illegal

Worst areas in Britain for uninsured drivers revealed, with one city dominating list

Millions of Brits fell silent to honour the fallen on Monday.

'We will remember them': Nation falls silent as millions of Brits remember the fallen for Armistice Day

Keir Starmer has attended Armistice Day events in Paris

Starmer becomes first British leader since Churchill to attend Armistice Day ceremony in France

Former soldier Daniel Khalife has pleaded guilty part way through his trial at Woolwich Crown Court to escaping from HMP Wandsworth

Former soldier Daniel Khalife admits escaping from Wandsworth Prison part way through trial