Cost of living divide: Northerners taking £336-a-year inflation hit from soaring oil and gas prices compared to southerners because their homes cost more to heat and they are more reliant on cars because of poor public transport
- People in North paying out around £330 more every year than southerners
- Poorer-insulated homes and greater reliance on cars sees bigger squeeze
- Slow wage growth is exacerbating the problem, new think tank report finds
People living in the North are bearing the brunt of the cost-of-living crisis and paying out around £330 more every year than their southern counterparts, a new report warns today.
Poorer-insulated homes and a greater reliance on cars compared to public transport means those in the North, Midlands and Wales are more exposed to spiking prices, the Centre for Cities think tank said.
Some residents are paying up to 30 per cent more, its research found, with slow wage growth also exacerbating the problem.
The report shows Burnley in Lancashire is the hardest hit, with an inflation rate of 11.5 per cent in May, followed by Blackpool and Blackburn at 11 per cent, and Bradford at 10.9 per cent.
In the Midlands, Leicester is among those most affected at 10.8 per cent while, in Wales, Swansea has a rate of 10.7 per cent.
Meanwhile, London and Cambridge currently face an annual inflation rate of 8.8 per cent each – nearly 30 per cent lower than in Burnley.
Poorer-insulated homes and a greater reliance on cars compared to public transport means those in the North, Midlands and Wales are more exposed to spiking prices, the Centre for Cities think tank said
The report shows Burnley in Lancashire is the hardest hit, with an inflation rate of 11.5 per cent in May, followed by Blackpool and Blackburn at 11 per cent, and Bradford at 10.9 per cent.
The Centre for Cities are calling for the Government to increase benefits in line with inflation, to introduce the £20 a week uplift to Universal Credit, and to provide those living in poorer-insulated homes with a one-off payment to help with soaring energy bills.
Centre for Cities Chief Executive Andrew Carter said: ‘The entire country has been impacted by the cost-of-living crisis but our research clearly shows some areas are being hit much harder than others.
‘Worryingly, the North, Midlands, and Wales are struggling with higher rates of inflation that are further squeezing finances and leaving their residents hundreds of pounds worse off.
‘These disparities prove that levelling up our cities to tackle spatial inequalities and futureproof the economy is more important than ever.
‘In the short-term it is imperative that those most vulnerable are given the support they need to get through this crisis.
‘Even while Westminster’s political situation is uncertain, ministers must act quickly to protect the areas most impacted and ensure they don’t fall even further behind.’
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