Inflation, Energy Bills, Mortgages: Cost Of Living Challenges Facing Britain In 2024

High interest rates, elevated energy bills, and above average inflation will see the cost of living crisis rumble on into 2024.

Polling shows the cost of living crisis remains a top priority for voters – with 77 per cent of voters reporting they believe the government is doing a "bad job" on the issue, according to recent polling by Ipsos.  

James Smith, research director at the Resolution Foundation, told PoliticsHome the three core areas households would see pressure from in 2024 was inflation, interest rates, and energy bills. 

Rishi Sunak made it his priority to half inflation by the end of 2023 after becoming Prime Minister the previous year. Inflation did fall to 3.9 per cent in the 12 months to November 2023 from a peak of a 41 year high of 11.1 per cent in October 2022 following Russia's invasion of Ukraine.

However, Smith warned that inflation falling did not mean prices were falling, too – rather that price increases has slowed down – leaving many household still struggling with high costs. 

"The government have, rightly or wrongly, declared victory on inflation – but inflation is still more than... the Bank of England's targets," Smith explained. 

"We're still in a position where the prices are much, much higher than they were prior to the cost of living crisis."

Emma Revie, chief executive of food bank charity the Trussell Trust, told PoliticsHome inflation remains a serious issue for clients using the organisation's services. 

"Even though inflation is dropping, inflation is still at such a high level, particularly on essential items like food – and where your budget is spent almost entirely on things that are being affected most by inflation," said Revie.

"This idea that we're past that problem is not something