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At a community food table in Staffordshire, produce is being handed out for free.

“I need to come here otherwise we’d be living on bread,” Rebecca Flynn told Sky News.

The 51-year-old said: “I’m earning pretty decent money, but it’s not enough.”

Rebecca Flynn
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Rebecca Flynn

It gives you an insight into just how deeply the cost of living crisis is biting – because Rebecca is working full-time as an office manager for a day service for people with learning difficulties.

On top of that, she has a second job going door-to-door on evenings and weekends, selling cosmetics and homeware.

“There’s nothing more I can do. Unless I win the lottery or get another job. It should be noticed that people are in this state,” she says.

“Local councils, local governments, they need to see what’s going on, come to ground level. It’s 2025. It shouldn’t be like this.”

But it’s not just Rebecca working all hours and needing food handouts to survive.

Alex Chapman is the co-founder of the Norton Canes Community Food Table, and says a third of the people who use it are working full-time.

“It’s mad that you’re working a good job and you think you’d be able to afford everything and go on holiday and everything like that, but in reality they’re struggling to put food on the table,” he says.

“We’re seeing a massive increase in the people that are using the food table. We see them in their work outfits. Professionals, nurses – you don’t expect them to be struggling because they’re working full-time. People who aren’t working – you expect them to be struggling. But it’s across the board.”

Cannock Chase
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Cannock Chase

The food table is in Cannock Chase.

Sky News analysis of local authorities gives an insight into why people are feeling dissatisfied their salaries are no longer delivering the comfortable lifestyles they thought hard work and a good job would deliver.

Over the past few years, Cannock Chase has gone from being a middle-class part of Britain to one of the lowest-earning areas in the UK.

In 2021, UK average annual salaries were just short of £26,000 – Cannock Chase was almost identical, according to Sky News analysis of Annual Survey of Hours and Earnings data from the Office for National Statistics (ONS).

Since then, the UK average wage has increased by 21.6% – or more than £5,000 a year – keeping pace with high inflation.

But in Cannock Chase, salaries have only risen by 8.4% – meaning on average people are now £300 worse off per month than the average worker across the UK.

SEE HOW YOUR AREA HAS COPED WITH THE COST OF LIVING CRISIS

It won’t have escaped your attention that prices have gone up, by a lot – by a fifth since 2021, the highest sustained rate since the 1990s – with some of the biggest rises among essentials like energy and food.

But, across the whole country, wages have actually done a pretty good job at keeping up with inflation. The problem is that the wage increase is an average, made up of highs and lows, while the price rises affect us more uniformly.

That means if you haven’t had a pay-rise, you will quite quickly find that you can’t afford as many of the things you used to.

People in places like Brentwood in Essex, the Cotswolds in rural Gloucestershire, and Melton in Leicestershire, have seen their wages increase at twice the rate of prices in the last few years, on average.

But on the other end of the scale are places like Cannock Chase, where inflation has been more than double the rate of wage increases.

It used to be a place where average earnings pretty much exactly reflected the UK midpoint. Now, people in Cannock are about £300 worse-off every month than the average person.

See how your area compares with our look-up.

Louise Schwartz, who has two children, describes herself as middle-class. After 20 years in the classroom she now has three jobs, working 50 hours a week as a teaching coach, at a software firm and giving private music lessons.

Her husband is an estate agent. They have a mortgage and three cars and together earn around £80,000 a year.

She says the family loves travelling together but can’t afford to go on holiday this year: “It makes me feel sad for my kids, more than anything, that we can’t give them a week away.

“We have food on the table, we’ve got heating, we’ve got cars to drive. But there are definitely some luxuries that we’ve cut back on recently.

“We don’t do expensive supermarkets. We don’t do expensive brands. We do whatever’s on offer for that particular week. My eldest son has started driving, which has then had an impact on my daughter’s horse-riding lessons.”

Louise Schwartz
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Louise Schwartz

Louise adds that the family have a hot tub in the garden that they bought years ago, but because of the cost of electricity, they don’t use it.

I ask her: “What does it say that a teacher and an estate agent both working full time can’t afford to go on holiday this year?”

She replies: “I think a lot of people might not be surprised by that because I think people are probably in a similar position but maybe we just don’t talk about it.”

Full-time workers tell us again and again they thought their lifestyles would be more comfortable – that the work ethic would be delivering more than it is.

Heidi Boot
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Heidi Boot

It seems the dissatisfaction is not only what one person described as “robbing Peter to pay Paul”, but also the lack of what people refer to as “pleasure money”.

Heidi Boot is what you might call the backbone of the middle classes – running a small business full-time called HB Aesthetics, a salon that does eyebrows, eyelashes and nails.

“I feel like everybody is stretching their appointments. People are working so hard for their money and they’ve got nothing to show for it. They’ve paid all their bills and now they’ve got nothing left to spend on themselves,” she says.

“It shouldn’t be that way. But because I see it all the time I feel like it’s just the normal now.”

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The constituency of Cannock Chase has always voted the way of the country – and at the last election showed significant support for Reform.

The financial woes will worry the government, which insists it’s taking action to give workers more money in their pockets.

But there’s no denying the despairing mood of middle England in the political battlegrounds that brought Labour to power.

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Hundreds of jobs at risk as LEON moves to cut unprofitable restaurants

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Hundreds of jobs at risk as LEON moves to cut unprofitable restaurants

The fast food chain LEON has taken a swipe at “unsustainable taxes” while moving to secure its future through the appointment of an administrator, leaving hundreds of jobs at risk.

The loss-making company, bought back from Asda by its co-founder John Vincent in October, said it had begun a process that aimed to bring forward the closure of unprofitable sites. It was to form part of a turnaround plan to restore the brand to its roots around natural foods.

It was unclear at this stage how many of its 71 restaurants – 44 of them directly owned – and approximately 1,100 staff would be affected by the plans for the so-called Company Voluntary Arrangement (CVA).

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“The restructuring will involve the closure of several of LEON’s restaurants and a number of job losses”, a statement said.

“The company has created a programme to support anyone made redundant.”

It added: “LEON and Quantuma intend to spend the next few weeks discussing the plans with its landlords and laying out options for the future of the Company.

More from Money

“LEON then plans to emerge from administration as a leaner business that can return to its founding values and principles more easily.

“In the meantime, all the group’s restaurants remain open, serving customers as usual. The LEON grocery business will not be affected in any way by the CVA.”

Mr Vincent said. “If you look at the performance of LEON’s peers, you will see that everyone is facing challenges – companies are reporting significant losses due to working patterns and increasingly unsustainable taxes.”

Mr Vincent sold the chain to Asda in 2021 for £100m but it struggled, like rivals, to make headway after the pandemic and cost of living crisis that followed the public health emergency.

The hospitality sector has taken aim at the chancellor’s business rates adjustments alongside heightened employer national insurance contributions and minimum wage levels, accusing the government of placing jobs and businesses in further peril.

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Revenues of water company to be cut by regulator Ofwat

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Revenues of water company to be cut by regulator Ofwat

The UK’s biggest water supplier has been dealt another blow as the regulator decided to reduce its income.

Thames Water, which supplies 16 million people in England, has been told by the watchdog Ofwat its revenues will be cut by more than £187m.

It comes as the utility struggles under a £17.6bn debt pile and the government has lined up insolvency practitioners for its potential collapse.

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Overall, water firms face a sector-wide revenue reduction of nearly £309m as a result of Ofwat’s determination. Thames Water’s £187.1m cut is the largest revenue reduction.

This will take effect from next year and up to 2030 as part of water companies’ regulator-approved five-year spending and investment plans.

The downward revenue revision has been made as Ofwat believes the companies will perform better than first thought and therefore require less money.

More on Thames Water

Better financial performance is ultimately good news for customers.

The change published on Wednesday is a technical update; the initial revenue projections published in December 2024 were based on projected financial performance but after financial results were published in the summer and Ofwat was able to apply these figures.

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Is Thames Water a step closer to nationalisation?

Thames Water and industry body Water UK have been contacted for comment.

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Why is Warner Bros for sale, what are the controversial bids – and how is Trump involved?

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Why is Warner Bros for sale, what are the controversial bids – and how is Trump involved?

A huge takeover that would rock the entertainment industry looks imminent, with Netflix and Paramount fighting over Warner Bros Discovery (WBD).

Streaming giant Netflix announced it had agreed a $72bn (£54bn) deal for WBD’s film and TV studios on 5 December, only for Paramount to sweep in with a $108.4bn (£81bn) bid several days later.

The takeover saga isn’t far removed from a Hollywood plot; with multi-billionaires negotiating in boardrooms, politicians on all sides expressing their fears for the public and the US president looming large, expected to play a significant role.

“Whichever way this deal goes, it will certainly be one of the biggest media deals in history. It will shake up the established TV and film norms and will have global implications,” Sky News’ US correspondent Martha Kelner said on the Trump 100 podcast.

So what do we know about the bids, why are they controversial – and how is Donald Trump involved?

Why is Warner Bros up for sale?

WBD’s board first announced it was open to selling or partly selling the company in October after a summer of hushed speculation.

Back in June, WBD announced its plan to split into two companies: one for its TV, film studios, and HBO Max streaming services, and one for the Discovery element of the business, primarily comprising legacy TV channels that air cartoons, news, and sports.

It came amid the cable industry’s continued struggles at the hands of streaming services, and CEO David Zaslav suggested splitting into two companies would give WBD’s brands the “sharper focus and strategic flexibility they need to compete most effectively in today’s evolving media landscape”.

The company’s long-term strategic initiatives have also been stifled by its estimated $35bn of debt. This wasn’t helped by the WarnerMedia and Discovery merger in 2022, which led to it becoming Warner Bros Discovery.

WBD's announced it was open to selling or partly selling the company in October. Pic: iStock
Image:
WBD’s announced it was open to selling or partly selling the company in October. Pic: iStock

What we know about the bids

The $72bn bid from Netflix is for the first division of the business, which would give it the rights to worldwide hits like the Harry Potter and Game of Thrones franchises – and Warner Bros’ extensive back catalogue of movies.

If the deal were to happen, it would not be finalised until the split is complete, and Discovery Global, including channels like CNN, will not form part of the merger.

Paramount’s $108.4bn offer is what’s known as a hostile bid. This means it went directly to shareholders with a cash offer for the entirety of the company, asking them to reject the deal with Netflix.

Ted Sarandos, CEO of Netflix. Pic: Reuters
Image:
Ted Sarandos, CEO of Netflix. Pic: Reuters

This deal would involve rival US news channels CBS and CNN being brought under the same parent company.

Netflix’s cash and stock deal is valued at $27.75 (£20.80) per Warner share, giving it a total enterprise value of $82.7bn (£62bn), including debt.

But Paramount says its deal will pay $30 (£22.50) cash per share, representing $18bn (£13.5bn) more in cash than its rivals are offering.

Paramount claims to have tried several times to bid for WBD through its board, but said it launched the hostile bid after hearing of Netflix’s offer because the board had “never engaged meaningfully”.

David Zaslav, CEO and president of Warner Bros Discovery. Pic: Reuters
Image:
David Zaslav, CEO and president of Warner Bros Discovery. Pic: Reuters

Why are politicians and experts concerned?

The US government will have a big say on who ultimately buys WBD, as Paramount and Netflix will likely face the Department of Justice’s (DOJ) Antitrust Division, a federal agency which scrutinises business deals to ensure fair competition.

Republicans and Democrats have voiced concerns over the potential monopolisation of streaming and the impact it would have on cinemas if Netflix – already the world’s biggest streaming service by market share – were to take over WBD.

Democratic senator Elizabeth Warren said the deal “would create one massive media giant with control of close to half of the streaming market – threatening to force Americans into higher subscription prices and fewer choices over what and how they watch, while putting American workers at risk”.

Similarly, Representative Pramila Jayapal, who co-chairs the House Monopoly Busters Caucus, called the deal a “nightmare,” adding: “It would mean more price hikes, ads, and cookie-cutter content, less creative control for artists, and lower pay for workers.”

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Netflix’s business model of prioritising streaming over cinemas has caused consternation in Hollywood.

The screen actors union SAG-AFTRA said the merger “raises many serious questions” for actors, while the Directors Guild of America said it also had “concerns”.

Experts suggest there’s less of a concern with the Paramount deal when it comes to a streaming monopoly, because its Paramount+ service is smaller and has less of an international footprint than Netflix.

How is Trump relevant?

After Netflix announced its bid, the president said of its path to regulatory clearance: “I’ll be involved in that decision.”

And while Mr Trump himself will not be directly involved, he appointed those in the DOJ Antitrust Division, and they have the authority to block or challenge takeovers.

However, his potential influence isn’t sitting well with some experts due to his ties with key players on the Paramount side.

Larry Ellison (centre left) in the White House with Trump. Pic: Reuters
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Larry Ellison (centre left) in the White House with Trump. Pic: Reuters

Paramount is run by David Ellison, the son of the Oracle tech billionaire (and world’s second-richest man) Larry Ellison, who is a close ally of Mr Trump.

Additionally, Affinity Partners, an investment firm run by Mr Trump’s son-in-law Jared Kushner, would be investing in the deal.

Also participating would be funds controlled by the governments of three unnamed Persian Gulf countries, widely reported as Saudi Arabia, Abu Dhabi and Qatar – countries the Trump family company has struck deals with this year.

David Ellison, CEO of Paramount Skydance.  Pic: Reuters
Image:
David Ellison, CEO of Paramount Skydance. Pic: Reuters

Critics of the Trump’s administration has accused it of being transactional, with the president known to hold grudges over those who are critical of him, however, Mr Trump told reporters on 8 December that he has not spoken with Mr Kushner about WBD, adding that neither Netflix nor Paramount “are friends of mine”.

John Mayo, an antitrust expert at Georgetown University, suggested the scrutiny by the Antitrust Division would be serious whichever offer is approved by shareholders, and that he thinks experts there will keep partisanship out of their decisions despite the politically charged atmosphere.

What happens next?

WBD must now advise shareholders whether Paramount’s offer constitutes a superior offer by 22 December.

If the company decides that Paramount’s offer is superior, Netflix would have the opportunity to match or beat it.

WBD would have to pay Netflix a termination fee of $2.8bn (£2.10bn) if it decides to scrap the deal.

Shareholders have until 8 January 2026 to vote on Paramount’s offer.

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