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The rate of inflation may have eased slightly but it is clear that UK households are facing a surge of rising costs ahead.

At an annual rate of 2.5%, the consumer prices index (CPI) measure of inflation for the 12 months to December is well below the energy-led cost of living crisis peak above 11%.

While that is obviously a relief, prices are still generally rising – just not as quickly.

Money latest: Reaction to inflation data amid warnings of rises ahead

Some rising bills ahead that we know of will be inflationary while others could be – it’s just too early to know given uncertainty hanging over the prospects for fresh Bank of England interest rate cuts and the effects of budget tax measures on employers from April.

Market jitters over the impact of Donald Trump’s return to the White House, which in turn have intensified scrutiny and pressure on the UK’s public finances, add to a complicated picture for the price outlook.

So where are the upwards pressures on costs in the UK all coming from? Here are 10 areas where they are likely, if not certain.

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Everywhere?

It’s an unashamedly broad brush but it’s important to recognise the fact that business lobby groups have widely warned of a price punishment since the budget, which put firms on the hook for £25bn of tax rises announced by chancellor Rachel Reeves.

It means that from April, when measures such as higher employer national insurance contributions take effect, any business facing a higher tax bill could potentially pile that additional cost on to their customers.

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What’s the outlook for grocery costs?

In shops

When it comes to the subject of passing on budget tax hikes, retailers have been the most explicit about it.

That is because the likes of supermarket chains are among the country’s biggest employers, with Tesco alone expecting a £250m hit per year over four years, amounting to £1bn.

The British Retail Consortium has warned of food prices going up, rising by an annual rate of 4.2% by the year’s end, while two-thirds of top bosses across the retail industry as a whole are planning to raise prices.

At banks and lenders

Even after today’s inflation data, financial markets are still only pricing in two interest rate cuts over the year to date mainly because inflation is forecast to rise in the months ahead.

Analysis by Pantheon Macroeconomics on Wednesday forecast a figure of 3.2% in April.

Higher borrowing costs to help keep a lid on inflation mean elevated mortgage rates, in a year that is expected to see millions of households seek a new fixed deal.

There is also a risk the recent market turmoil, that has seen UK government long-term borrowing costs jump to levels not seen since 1998, pushes mortgage costs even higher.

Any rises in so-called swap rates, which determine the cost of financing home loans for banks, are typically passed on to the borrower.

On imports

A weaker pound – as recently witnessed during the market troubles – makes the cost of importing goods more expensive.

Sterling is currently 12 cents down on where it stood against the dollar at the end of September while it is more than two cents down on the euro.

The divergence in the falls tells you that the bulk of the pound’s problems are more tied to dollar strength than pound weakness.

It can be explained by the fact that investors are worried about the impact of universal trade tariffs threatened by Mr Trump pushing up domestic inflation in the US.

Fuel bills

The pressure on the pound as part of the aforementioned market event means that a double whammy for fuel bills is imminent.

A weaker pound, coupled with a rise in global oil costs which are priced in dollars, means that drivers are facing the prospect of further increases at the pumps beyond the 3p-a-litre seen since Christmas.

Brent crude oil is currently standing at $80 a barrel – up from $71 just a month ago.

Energy

Energy bills have been on the rise since October when a 10% increase in the energy price cap took effect.

While typical bills were up by a further 1% in January, further increases in wholesale prices in recent months are expected to be reflected in the cap from April.

The most recent forecast by industry experts Cornwall Insight saw a 3% hike from April to an average £1,785, though recent cold snaps across Europe, coupled with weak storage levels, have pushed up natural gas contracts since.

Benchmark British gas prices rose by 20% during the second half of December as colder weather led to higher demand across Europe. Weaker inventories will also mean that storage has to be replenished at a higher cost than seen after the previous, mild winter.

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Why your energy bills look set to rise

Water

It was announced just before Christmas that the average annual water bill across England and Wales was to rise by 36% over the next five years.

Just how much depends on where you live as the hikes vary by supplier. Southern Water customers face the heftiest increases from April through a 53% increase to £642 by 2030.

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Water bills ‘an absolute disgrace’

Council tax

Local authorities in England will be able to raise core council tax by up to 3% and the adult social care element by 2% in the coming financial year.

No final decisions have been taken across local authorities in Wales. In Scotland, where the bill includes water rates, rises of up to 10% are being considered by some councils after many years of frozen bills.

Mobile phones and broadband

Most customers are on plans which have links to December’s inflation rate.

Analysis by price comparison service uSwitch showed that mobile users faced average increases of £15.90 a year from April while broadband bills would go up by a typical £21.99.

It’s worth noting, at this point, that the communications regulator has banned contracts linked to the rate of inflation in favour of a set price increase to bolster transparency.

This applied to new contracts from January.

What about my ability to absorb price rises?

The good news here is that the pace of average wage growth has outstripped inflation since August 2023.

The trouble is, that has done little to make households feel better off in what is an evolving cost of living crisis.

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Care whistleblower ‘who saw elderly resident being punched’ could face removal from Britain

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Care whistleblower 'who saw elderly resident being punched' could face removal from Britain

A care worker who reported the alleged abuse of an elderly care home resident, which triggered a criminal investigation, is facing destitution and potential removal from Britain after speaking up.

“Meera”, whose name we have changed to protect her identity, said she witnessed an elderly male resident being punched several times in the back by a carer at the home where she worked.

Sky News is unable to name the care home for legal reasons because of the ongoing police investigation.

“I was [a] whistleblower there,” said Meera, who came to the UK from India last year to work at the home.

“Instead of addressing things, they fired me… I told them everything and they made me feel like I am criminal. I am not criminal, I am saving lives,” she added.

Meera
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‘Meera’ spoke up about abuse she said she witnessed in the care home where she worked

Like thousands of foreign care workers, Meera’s employer sponsored her visa. Unless she can find another sponsor, she now faces the prospect of removal from the country.

“I am in trouble right now and no one is trying to help me,” she said.

More on Migrant Crisis

Meera said she reported the alleged abuse to her bosses, but was called to a meeting with a manager and told to “change your statement, otherwise we will dismiss you”.

She refused. The following month, she was sacked.

The care home claimed she failed to perform to the required standard in the job.

She went to the police to report the alleged abuse and since then, a number of people from the care home have been arrested. They remain under investigation.

‘Migrants recruited because many are too afraid to speak out’

The home has capacity for over 60 residents. It is unclear if the care home residents or their relatives know about the police investigation or claim of physical abuse.

Since the arrests, the regulator, the Care Quality Commission (CQC), carried out an investigation at the home triggered by the concerns – but the home retained its ‘good’ rating.

Meera has had no reassurance from the authorities that she will be allowed to remain in Britain.

In order to stay, she’ll need to find another care home to sponsor her which she believes will be impossible without references from her previous employer.

She warned families: “I just want to know people in care homes like these… your person, your father, your parents, is not safe.”

She claimed some care homes have preferred to recruit migrants because many are too afraid to speak out.

“You hire local staff, they know the legal rights,” she said. “They can complain, they can work anywhere… they can raise [their] voice,” she said.

Becky Johnson
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Sky’s Becky Johnson spoke to ‘Meera’

Sky News has reported widespread exploitation of care visas and migrant care workers.

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More than 100 migrants face being in UK illegally
Immigration crackdown will fuel ‘exodus’ of nurses
New English language and UK citizenship requirements for migrants

Currently migrants make up around a third of the adult social care workforce, with the majority here on visas that are sponsored by their employers.

As part of measures announced in April in the government’s immigration white paper, the care visa route will be closed, meaning care homes will no longer be able to recruit abroad.

‘Whole system is based on power imbalance’

But the chief executive of the Work Rights Centre, a charity that helps migrants with employment issues, is warning that little will change for the tens of thousands of foreign care workers already here.

“The whole system is based on power imbalance and the government announcement doesn’t change that,” Dr Dora-Olivia Vicol told Sky News.

She linked the conditions for workers to poor care for residents.

Dr Dora
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Work Rights Centre CEO Dr Dora-Olivia Vicol

“I think the power that employers have over migrant workers’ visas really makes a terrible contribution to the quality of care,” she said.

Imran agrees. He came to the UK from Bangladesh, sponsored by a care company unrelated to the one Meera worked for. He says he frequently had to work 14-hour shifts with no break because there weren’t enough staff. He too believes vulnerable people are being put at risk by the working conditions of their carers.

Migrant workers ‘threatened’ over visas

“For four clients, there is [a] minimum requirement for two or three staff. I was doing [it] alone,” he said, in broken English.

“When I try to speak, they just directly threaten me about my visa,” he said.

“I knew two or three of my colleagues, they are facing the same issue like me. But they’re still afraid to speak up because of the visa.”

Meera

A government spokesperson called what happened to Imran and Meera “shocking”.

“No one should go to work in fear of their employer, and all employees have a right to speak up if they witness poor practice and care.”

James Bullion, from the CQC, told Sky News it acts on intelligence passed to it to ensure people stay safe in care settings.

Additional research by Leah Adin

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Donald Trump may be denied privilege of addressing parliament on UK state visit

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Donald Trump may be denied privilege of addressing parliament on UK state visit

Donald Trump may be denied the honour of addressing parliament on his state visit to the UK later this year, with no formal request yet submitted for him to be given that privilege.

It comes after President Macron’s successful state visit this week, in which he was invited to speak in front of both Houses of Parliament.

Sky News has been told the Speaker of the House of Commons, Sir Lindsay Hoyle, hasn’t so far received a request to invite the US president to speak in parliament when he is expected to visit in September.

It was confirmed to MPs who have raised concerns about the US president being allowed to address both houses.

Kate Osborne, Labour MP for Jarrow and Gateshead East, wrote to the speaker in April asking him to stop Mr Trump from addressing parliament, and tabled an early-day motion outlining her concerns.

“I was happy to see Macron here but feel very differently about Trump,” she said.

“Trump has made some very uncomfortable and worrying comments around the UK government, democracy, the Middle East, particularly around equalities and, of course, Ukraine.

“So, I think there are many reasons why, when we’re looking at a state visit, we should be looking at why they’re being afforded that privilege. Because, of course, it is a privilege for somebody to come and address both of the houses.”

But the timing of the visit may mean that any diplomatic sensitivities, or perceptions of a snub, could be avoided.

Macron addressing Parliament
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France’s President Emmanuel Macron addressed parliament during his state visit this month

Lord Ricketts, a former UK ambassador to France, pointed out that parliament isn’t sitting for much of September, and that could help resolve the issue.

In 2017, he wrote a public letter questioning the decision to give Donald Trump his first state visit, saying it put Queen Elizabeth II in a “very difficult position”.

Parliament rises from 16 September until 13 October due to party conferences.

The dates for the state visit haven’t yet been confirmed by Buckingham Palace or the government.

However, they have not denied that it will take place in September, after Mr Trump appeared to confirm they were planning to hold the state visit that month. The palace confirmed this week that the formal planning for his arrival had begun.

With the King likely to still be in Scotland in early September for events such as the Braemar Gathering, and the anniversary of his accession and the death of Queen Elizabeth on the 8th September, it may be expected that the visit would take place sometime from mid to the end of September, also taking into consideration the dates of the Labour Party conference starting on the 28th September and possibly the Lib Dem’s conference from the 20th-23rd.

Donald Trump. Pic: Reuters
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Mr Trump has said he believes the trip to the UK will take place in September. Pic: Reuters

When asked about parliamentary recess potentially solving the issue, Ms Osborne said: “It may be a way of dealing with it in a very diplomatic way… I don’t know how much control we have over Trump’s diary.

“But if we can manoeuvre it in a way that means that the House isn’t sitting, then that seems like a good solution, maybe not perfect, because I’d actually like him to know that he’s not welcome.”

A message from the speaker’s office, seen by Sky News, says: “Formal addresses to both Houses of Parliament are not automatically included in the itinerary of such a state visit.

“Whether a foreign head of state addresses parliament, during a state visit or otherwise, is part of the planning decisions.”

The King and Mr Trump raising a toast in 2019. Pic: Reuters
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Mr Trump made his first state visit to the UK in June 2019 during his first presidency. File pic: Reuters

It’s understood that if the government agrees to a joint address to parliament, the Lord Chamberlain’s office writes to the two speakers, on behalf of the King, to ask them to host this.

It will be Mr Trump’s second state visit.

During his first, in 2019, he didn’t address parliament, despite the fact that his predecessor, Barack Obama, was asked to do so.

It was unclear if this was due to the fact John Bercow, the speaker at the time, made it clear he wasn’t welcome to do so.

However, it didn’t appear to dampen Mr Trump’s excitement about his time with the Royal Family.

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Speaking earlier this year, he described his state visit as “a fest” adding “it’s an honour… I’m a friend of Charles, I have great respect for King Charles and the family, William; we have really just a great respect for the family. And I think they’re setting a date for September.”

It is expected that, like Mr Macron, the pageantry for his trip this time will revolve around Windsor, with refurbishment taking place at Buckingham Palace.

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Liverpool retires number 20 shirt at all levels in honour of Diogo Jota

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Liverpool retires number 20 shirt at all levels in honour of Diogo Jota

Liverpool have retired the number 20 shirt in honour of Diogo Jota – the first time it has made such a gesture.

The club said it was a “unique tribute to a uniquely wonderful person” and the decision was made in consultation with his wife and family.

The number 20 will be retired at all levels, including the men’s and women’s first teams and academy squads.

A statement said: “It was the number he wore with pride and distinction, leading us to countless victories in the process – and Diogo Jota will forever be Liverpool Football Club’s number 20.”

The club called it a “recognition of not only the immeasurable contribution our lad from Portugal made to the Reds’ on-pitch successes over the last five years, but also the profound personal impact he had on his teammates, colleagues and supporters and the everlasting connections he built with them”.

Jota's wife joined Liverpool players to view tributes at Anfield on Friday. Pic: Liverpool FC
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Jota’s wife joined Liverpool players to view tributes at Anfield on Friday. Pic: Liverpool FC

Pic: Liverpool FC
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Pic: Liverpool FC

Newly-married Jota died alongside his brother when his Lamborghini crashed in northern Spain on 3 July.

Police said this week that all the evidence so far suggests Jota was the one driving the vehicle.

Liverpool teammates joined members of Jota’s family, including his wife Rute, at a huge memorial site outside Anfield on Friday.

Read more from Sky News:
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Trump may be denied privilege of addressing parliament

A fan looks at messages written onto a memorial wall created near Anfield Stadium. Pic: Reuters
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A fan looks at messages on a memorial wall near Anfield. Pic: Reuters


Liverpool's captain Virgil van Dijk and Liverpool's player Andrew Robertson arrive on the day of the funeral ceremony of Liverpool's Portug
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Virgil van Dijk and Andy Robertson were among players at the funeral. Pic: Reuters

The star’s funeral took place last weekend, with Liverpool colleagues and members of the Portuguese national team in attendance.

Reds captain Virgil van Dijk carried a shirt bearing the number 20 made from flowers.

Liverpool players returned to the club’s training ground for the start of pre-season on Tuesday.

Their first game since Jota’s death will be on Sunday when they play a friendly away against Preston North End.

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