Cost of living gap: Northerners who incur £336 a year of inflation are hit by rising oil and gas prices compared to Southerners as their homes cost more to heat and they are more dependent on cars due to poor public transport
- People in the north pay about £330 more than southerners each year
- Poorer insulated houses and greater reliance on cars are putting more pressure on
- Slow wage growth exacerbates the problem, new think tank report finds
People living in the north have been hit hardest by the cost of living crisis, paying about £330 more each year than their southern counterparts, a new report warns today.
Poorer insulated homes and greater reliance on cars compared to public transport means those in the North, Midlands and Wales are more exposed to rising prices, according to think tank Center for Cities.
Some residents pay up to 30 percent more, research shows, while slow wage growth is also exacerbating the problem.
The report shows Burnley in Lancashire is hardest hit, with a inflation from 11.5 percent in May, followed by Blackpool and Blackburn at 11 percent and Bradford at 10.9 percent.
In the Midlands, Leicester is one of the hardest hit at 10.8 percent, while in Wales Swansea has 10.7 percent.
Meanwhile, London and Cambridge are currently facing annual inflation rates of 8.8 percent each – nearly 30 percent lower than Burnley.
Poorer insulated homes and greater reliance on cars compared to public transport means those in the North, Midlands and Wales are more exposed to rising prices, the Center for Cities think tank said.
The report shows Burnley in Lancashire is hardest hit, with inflation at 11.5 percent in May, followed by Blackpool and Blackburn at 11 percent and Bradford at 10.9 percent.
The Center for Cities is calling on the government to increase benefits in line with inflation, to introduce the £20-per-week increase for Universal Credit and to give a one-time payment to those living in less-insulated homes to help with rising energy bills.
The director of the Center for Cities, Andrew Carter, said: ‘The whole country has been hit by the cost of living crisis, but our research clearly shows that some areas are being hit much harder than others.
Worryingly, the North, Midlands and Wales are grappling with higher inflation rates which are putting further strain on finances and leaving their residents hundreds of pounds worse off.
“These inequalities prove that it is more important than ever to level our cities to address spatial inequalities and future-proof the economy.
In the short term, it is imperative that the most vulnerable receive the support they need to get through this crisis.
“Even while Westminster’s political situation is uncertain, ministers must act quickly to protect the most affected areas and ensure they do not fall further behind.”