Soaring bills are the gift that keeps on giving for Reform. Shame Labour doesn't have the guts to do anything about them | Mathew Lawrence

"The profound squeeze on living standards has become the defining, explosive feature of British politics. Each week seems to bring more pain in the form of higher bills. Water bills are forecast to rise again next year, on top of the energy price cap that recently increased to 1,755 a year. For rightwing populists, the cost of living crisis is the gift that keeps on giving, allowing them to blame the experience of declining living standards on migrants and perceived outsiders."

"We often hear that the cost of living crisis is caused by rising energy prices linked to Vladimir Putin's war on Ukraine, or by disruption caused by the climate crisis. These factors, while hugely important, are not the whole story. The structure of Britain's economy amplifies the effects of inflation and makes life more expensive. When external shocks hit our economy, they translate into people paying even higher prices here than they do elsewhere."

"This is because essential services, such as energy, housing and transport, have been designed as opportunities for profit extraction. Take the energy sector. Recent analysis from Common Wealth, the thinktank I direct, estimated that a quarter of the typical energy bill in 2024 was profit. That is equivalent to every household paying 416 a year so other people can grow rich."

Living standards in Britain are under severe pressure as households face rising bills for energy, water and transport. Energy price caps and projected water bill increases are intensifying the squeeze and fuelling political resentment. Populist actors exploit declining living standards by blaming migrants and outsiders, risking major electoral shifts. External shocks like the war in Ukraine and climate disruption matter, but structural economic arrangements magnify their effects. Essential services are structured to allow profit extraction, with a quarter of typical energy bills being profit, almost a third of water bills funding dividends, and rail profits largely distributed to shareholders despite subsidies.

Read at www.theguardian.com