Cost of living: Record one million emergency food bank parcels expected to be handed out this winter

Published

2 years ago

October 18, 2023

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More than one million emergency parcels are expected to be distributed by food banks this winter due to an “unprecedented need” for help, a charity has warned.

The Trussell Trust network, which supports more than 1,300 food bank centres across the UK, has forecast that more than 600,000 people will rely on food banks from December this year until next February.

That will mean almost 100,000 more emergency food parcels are required compared to the same period last year, when a total of 904,000 were handed out.

Last winter saw 220,000 children supported by emergency meals from the Trussell Trust network, with 225,000 people using a food bank for the first time.

And the charity believes the numbers will continue to rise in the run up to Christmas and into early next year, as many people hit crisis point.

One in seven people in the UK are forced to go hungry because they don’t have enough money to feed themselves, Trussell Trust chief executive, Emma Revie, said.

“We don’t want to spend every winter saying things are getting worse, but they are,” she warned.

Food is desperately needed to make up the emergency parcels, together with money to pay for a shortfall in donations, Ms Revie said.

“Every year we are seeing more and more people needing food banks, and that is just not right,” she added, vowing: “We won’t stand by and let this continue.”

“Together, we have roots into hundreds of communities and while someone facing hunger can’t change the structural issues driving the need for food banks on their own, thousands of us coming together can,” Ms Revie said.

“We must end hunger across the UK so that no one needs a food bank to survive.”

A survey of 282 Trussell Trust food banks over the last three months showed 93% had to buy extra food to meet demand.

Almost a third (32%) admitted they were worried about maintaining their current service levels as winter approaches.

‘We face winter with trepidation’

Natasha Copus, project manager at the Trussell Trust food bank in Southend, Essex, said their centres were experiencing “unprecedented need”.

“We have had to buy around half the food we give out already this year and that is not even with the added pressure of heating and energy that people will face this winter.

“It is with trepidation that we face the next six months of being there for people,” she added, as she called on the local community to offer their support.

Meanwhile Daniel Kebede, the general secretary of the National Education Union, reiterated calls for free school meals to be extended to all pupils to fight poverty and child hunger, which have “tremendous social and moral costs”.

Food banks preparing to support bigger numbers of people is a “damning sign” of the government’s failure to support people during the cost-of-living crisis, he said.

‘Poverty does not discriminate’

Trussell Trust food banks provided a lifeline for education worker Aneita after a problem with her tax credits saw her “suddenly plunged into a financial nightmare”.

“I remember sitting in the waiting room, with my daughter, waiting to be given a food parcel,” she said.

“I was holding back my tears, not wanting my daughter to see me upset, and thinking, ‘how has it got to this?’.”

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Now Aneita is calling for an end to food banks.

“We need change – a real living wage, benefits that reflect the cost of living, more social housing.

“Poverty does not discriminate – it can and will single you out through no fault of your own.”

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Tesla approves $29bn share award to Elon Musk

Published

1 hour ago

August 4, 2025

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Tesla approves bn share award to Elon Musk

Tesla’s board has signed off a $29bn (£21.8bn) share award to Elon Musk after a court blocked an earlier package worth almost double that sum.

The new award, which amounts to 96 million new shares, is not just about keeping the electric vehicle (EV) firm’s founder in the driving seat as chief executive.

The new stock will also bolster his voting power from a current level of 13%.

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He and other shareholders have long argued that boosting his interest in the company is key to maintaining his focus after a foray into the trappings of political power at Donald Trump‘s side – a relationship that has now turned sour.

Musk is angry at the president’s tax cut and spending plans, known as the big beautiful bill. Tesla has also suffered a sales backlash as a result of Musk’s past association with Mr Trump and role in cutting federal government spending.

The company is currently focused on the roll out of a new cheaper model in a bid to boost flagging sales and challenge steep competition, particularly from China.

The headwinds have been made stronger as the Trump administration has cut support for EVs, with Musk admitting last month that it could lead to a “few rough quarters” for the company.

Tesla is currently running trials of its self-driving software and revenues are not set to reflect the anticipated rollout until late next year.

Musk had been in line for a share award worth over $50bn back in 2018 – the biggest compensation package ever seen globally.

But the board’s decision was voided by a judge in Delaware following a protracted legal fight. There is still a continuing appeal process.

Earlier this year, Tesla said its board had formed a special committee to consider some compensation matters involving Musk, without disclosing details.

The special committee said in the filing on Monday: “While we recognize Elon’s business ventures, interests and other potential demands on his time and attention are extensive and wide-ranging… we are confident that this award will incentivize Elon to remain at Tesla”.

It added that if the Delaware courts fully reinstate the 2018 “performance award”, the new interim grant would either be forfeited or offset to ensure no “double dip”.

The new compensation package is subject to shareholder approval.

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Motor finance operators can breathe big sigh of relief

Published

1 hour ago

August 4, 2025

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Motor finance operators can breathe big sigh of relief

Bank stocks have enjoyed a boost as traders digest the Supreme Court’s ruling on the car finance scandal.

Some of the country’s most exposed lenders, including Lloyds and Close Brothers, saw their share prices jump by 7.55% and 21.62% respectively.

It came after the court delivered a reprieve from a possible £44bn compensation bill.

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Banks will still most likely have to fork out over discretionary commissions – a type of commission for dealers that was linked to how high an interest rate they could get from customers.

The FCA, which banned the practice in 2021, is currently consulting on a redress scheme but the final bill is unlikely to exceed £18bn. Overall, the result has been better than expected for the banks.

Lloyds, which owns the country’s largest car finance provider Black Horse, had set aside £1.2bn to cover compensation payouts.

Following the judgment, the bank said it “currently believes that if there is any change to the provision, it is unlikely to be material in the context of the group”.

The judgment released some of the anxiety that has been weighing over the Bank’s share price.

Jonathan Pierce, banking analyst at Jefferies, said the FCA’s prediction was “consistent with our estimates, and most importantly, we think it largely de-risks Lloyds’ shares from the ‘motor issue'”.

Bank stocks have responded robustly to each twist and turn in this tale, sinking after the Court of Appeal turned against them and jumping (as much as 8% in the case of Close Brothers) when the Supreme Court allowed the appeal hearing.

Concerns about this volatility motivated the Supreme Court to deliver its judgment late in the afternoon so that traders would have time to absorb the news.

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FCA considering compensation scheme over car finance scandal – raising hopes of payouts for motorists

Published

22 hours ago

August 3, 2025

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FCA considering compensation scheme over car finance scandal - raising hopes of payouts for motorists

Thousands of motorists who bought cars on finance before 2021 could be set for payouts as the Financial Conduct Authority (FCA) has said it will consult on a compensation scheme.

In a statement released on Sunday, the FCA said its review of the past use of motor finance “has shown that many firms were not complying with the law or our disclosure rules that were in force when they sold loans to consumers”.

“Where consumers have lost out, they should be appropriately compensated in an orderly, consistent and efficient way,” the statement continued.

The FCA said it estimates the cost of any scheme, including compensation and administrative costs, to be no lower than £9bn – adding that a total cost of £13.5bn is “more plausible”.

It is unclear how many people could be eligible for a pay-out. The authority estimates most individuals will probably receive less than £950 in compensation.

The consultation will be published by early October and any scheme will be finalised in time for people to start receiving compensation next year.

What motorists should do next

The FCA says you may be affected if you bought a car under a finance scheme, including hire purchase agreements, before 28 January 2021.

Anyone who has already complained does not need to do anything.

The authority added: “Consumers concerned that they were not told about commission, and who think they may have paid too much for the finance, should complain now.”

Its website advises drivers to complain to their finance provider first.

If you’re unhappy with the response, you can then contact the Financial Ombudsman.

The FCA has said any compensation scheme will be easy to participate in, without drivers needing to use a claims management company or law firm.

It has warned motorists that doing so could end up costing you 30% of any compensation in fees.

The announcement comes after the Supreme Court ruled on a separate, but similar, case on Friday.

The court overturned a ruling that would have meant millions of motorists could have been due compensation over “secret” commission payments made to car dealers as part of finance arrangements.

The FCA’s case concerns discretionary commission arrangements (DCAs) – a practice banned in 2021.

Under these arrangements, brokers and dealers increased the amount of interest they earned without telling buyers and received more commission for it. This is said to have then incentivised sellers to maximise interest rates.

In light of the Supreme Court’s judgment, any compensation scheme could also cover non-discretionary commission arrangements, the FCA has said. These arrangements are ones where the buyer’s interest rate did not impact the dealer’s commission.

This is because part of the court’s ruling “makes clear that non-disclosure of other facts relating to the commission can make the relationship [between a salesperson and buyer] unfair,” it said.

It was previously estimated that about 40% of car finance deals included DCAs while 99% involved a commission payment to a broker.

Nikhil Rathi, chief executive of the FCA, said: “It is clear that some firms have broken the law and our rules. It’s fair for their customers to be compensated.

“We also want to ensure that the market, relied on by millions each year, can continue to work well and consumers can get a fair deal.”