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Petrol prices have hit a record high across the UK in what the RAC has described as a “truly dark day for drivers”.

The average daily price per litre hit 142.94p on Sunday in data reported on Monday morning by RAC/Experian Catalist, which is separate from the weekly average record price reported by government.

The previous record was 142.48p in April 2012.

Diesel reached 146.50p a litre on Sunday – still 1.43p short of its April 2012 all-time high of 147.93p.

The price of unleaded has rocketed by 28p a litre from 114.5p in October 2020, adding £15 to the cost of filling up a 55-litre family car, according to RAC Fuel Watch.

It comes as oil prices worldwide continue to climb, with the benchmark Brent crude increasing 56 cents, or 0.7%, to $86.09 a barrel, following on from last Friday’s 1.1% gain.

RAC fuel spokesman Simon Williams said: “This is truly a dark day for drivers, and one which we hoped we wouldn’t see again after the high prices of April 2012. This will hurt many household budgets and no doubt have knock-on implications for the wider economy.

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“The big question now is: where will it stop and what price will petrol hit? If oil gets to $100 a barrel, we could very easily see the average price climb to 150p a litre.

“Even though many people aren’t driving quite as much as they have in the past due to the pandemic, drivers tell us they are more reliant on their cars now than they have been in years, and many simply don’t have a choice but to drive.

Why are petrol prices so high in the UK?

The main reason is the jump in crude prices worldwide (in January the price was just over $50 a barrel and by October it pushed over $86), but this is not the only factor affecting petrol prices in the UK.

In September the UK switched to E10 petrol in an effort to be greener.
This meant the bio content of unleaded increased from 5% ethanol to 10%.

Ethanol is more expensive than petrol and the change added around a penny a litre to the cost, according to RAC figures.

This could rise even further as the price of ethanol has gone up by 52% since E10 was introduced.
The bio and petrol components of each litre add up to around 50p.

Then you have the various taxes that are added to that cost:
Duty sits at 57.95p a litre and VAT currently equates to nearly 24p.
The VAT, of course, is applied on top of all other elements of the petrol price including duty and retailer margin.

Since April 2020 retailers have also increased their average margin on a litre by 2p from around 5.5p to 7.5p a litre.

The amount of petrol sold at the pumps plummeted when most of us stayed home during the first UK lockdown last year.
Retailers, particularly the smaller independent ones, are now trying to balance the books.

“There’s a risk those on lower incomes who have to drive to work will seriously struggle to find the extra money for the petrol they so badly need.

“We urge the government to help ease the burden at the pumps by temporarily reducing VAT, and for the biggest retailers to bring the amount they make on every litre of petrol back down to the level it was prior to the pandemic.”

The situation for petrol is unlikely to improve soon, with analysts forecasting Brent crude prices to remain high for the rest of the year.

US investment bank Goldman Sachs is among those to predict that Brent crude could reach $90 a barrel by the end of 2021, blaming a rebound in demand from Asia following pandemic re-openings.

Elsewhere, India and France are also among the countries to have seen record highs in recent days, although – like in the UK – their petrol prices are inflated by massive fuel taxes.

In the UK, tax accounts for 57% of the average retail price for a litre of petrol, according to the RAC.

The AA said the high petrol prices could lead more drivers to consider switching to electric vehicles, with electricity prices as low as 4.5p per kWh off peak at home.

The organisation’s fuel spokesman Luke Bosdet said: “Whether it’s down to oil producers, market speculators, Treasury taxes or struggling retailers trying to balance their margins, record pump prices must be saying to drivers with the means that it is time to make the switch to electric.

“As for poorer motorists, many of them now facing daily charges to drive in cities, there is no escape. It’s a return to cutting back on other consumer spending, perhaps even heating or food, to keep the car that gets them to work on the road.”

The record-high prices come just weeks after much of the UK saw fuel shortages due to a lack of tanker drivers.

Ron Smith, senior oil and gas analyst at BCS Global Markets, said this shortage would also continue to affect motorists, adding: “The problem for motorists is only partly one of higher prices.

“As or more important for many will be the ability to get petrol at any price, given the lack of fuel at forecourts across the country.

“Of course, even if the trucking situation is solved, petrol prices seem likely to remain elevated for the coming months due to the simple reason that crude prices have risen substantially.”

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Second Horizon victim Janet Skinner ‘forced’ to sue Post Office as she seeks full redress for wrongful conviction

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Second Horizon victim Janet Skinner 'forced' to sue Post Office as she seeks full redress for wrongful conviction

A victim of the Post Office Horizon IT scandal is taking legal action against the government-owned organisation as she seeks full redress for her wrongful conviction.

Janet Skinner is believed to be only the second victim to sue the Post Office.

The former subpostmistress has been “forced” to take the state-owned business to court, her solicitor told Sky News.

Money blog: Oil hit lowest since 2021 with possible impact on filling your car

Ms Skinner has been a campaigner for victims of the faulty Horizon software for nearly two decades.

Around 1,000 people were wrongly prosecuted and convicted throughout the UK between 1999 and 2015 as a result of Horizon.

Despite having her conviction for false accounting overturned in 2021, Ms Skinner has yet to receive a final payment, has been given an insufficient interim sum and is being asked for six different expert reports, said lawyer Simon Goldberg.

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Ms Skinner is taking legal action in an attempt to see the issue resolved.

“There’s no sign of resolution. We’re only forced to do it because enough is enough,” Mr Goldberg said.

“It’s cruel and traumatic beyond belief that she should still have to be fighting.”

Ms Skinner’s claim should have been settled within 12 months of the conviction being overturned, he said.

Mr Goldberg added the interim offers are not in keeping with the recommendations of retired High Court judge Sir Wyn Williams, who presided over the public inquiry into the scandal.

Both the Post Office and the Department for Business and Trade, which administers all but one of the victims’ redress schemes, said in October they would “always apply a generous approach” to assessing redress.

But Ms Skinner was initially offered a payment worth only 15% of her total claim.

“They’ve [claim assessors] clearly tried to grind her down and make her give up, and we’re not playing,” her solicitor said.


Janet Skinner speaking to Sky News in January 2024.

More legal action to come?

While Ms Skinner is believed to be only the second victim to launch a civil case against the Post Office, she may not be the last.

A postmaster made famous after being portrayed in the ITV drama Mr Bates vs the Post Office, Lee Castleton became the first to take such action in March.

“Unless there’s a sea change, there will definitely be more claims,” Mr Goldberg said.

Ms Skinner (L) after having her conviction overturned by the Court of Appeal in 2021
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Ms Skinner (L) after having her conviction overturned by the Court of Appeal in 2021

Ms Skinner was given a nine-month custodial sentence in 2007 after the Horizon computer programme, made by Fujitsu, incorrectly generated a £59,000 shortfall.

She was imprisoned when her two children were in their teens, released with an ankle monitor tag, and sold her house when it was due to be repossessed.

Amid the ordeal, Ms Skinner suffered a neurological collapse and was left paralysed from the neck down. She has had to regain the ability to walk.

A Post Office spokesperson said: “We recognise the devastating impact of the Horizon IT Scandal on former postmasters like Ms Skinner and would like to unequivocally apologise for her experiences.

“Responsibility for Ms Skinner’s redress claim moved to the Department for Business and Trade in June 2025.

“We cannot comment on ongoing legal proceedings but once we receive the claim, we will engage fully in the process.”

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Out of a job and on benefits: Why Britain isn’t working

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Out of a job and on benefits: Why Britain isn't working

Winter is closing in on the Bidston Rise housing estate in Birkenhead, but there’s one front garden that hasn’t given in yet.

A hydrangea is thriving in a shady spot and the borders are still in bloom. The man inside can give his neighbours advice on everything from ericaceous compost and fertiliser but he can’t earn a living from it.

Mick is a landscape gardener by trade but has been unemployed for almost a decade now because of his health, which deteriorated rapidly after a heart attack in his 30s.

Mick
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Mick

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A few years later, an operation to remove a clot in his right leg resulted in an amputation.

In 2016, he also lost his left leg to vascular disease. Now in his 60s, he still wants to work but the opportunities available to him are slim.

Bidston Rise, Birkenhead
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Bidston Rise, Birkenhead

Mick's garden
Image:
Mick’s garden

Still, he counts himself lucky. “I know I’m getting on a bit now. I’ve lost my legs, but I can still do certain amounts of stuff.

“There are people out there who struggle to get out of bed in the morning, but they’re having their benefits cut because they’re saying they are fit for work. It’s ridiculous.”

Statistics met with ‘surprise and disbelief’

Mick is among the 10.4 million people of working age who report a disability in Britain today – that’s around a quarter of all 16-64 year olds.

It is a statistic that has been met with both surprise and disbelief as policymakers grapple for explanations behind the nation’s declining health, which is apparently so bad that 2.8 million people have dropped out of the labour market altogether, meaning they have stopped looking for work.

In Westminster, alarm has slowly crept in as the government struggles to digest the bill: Disabled people are entitled to benefits that support them with the costs of their disability.

They are also less likely to be in work than the rest of the population. The natural consequence is that Britain’s benefits bill has ballooned.

One-in-10 people now claim either incapacity or disability benefits. At £76.8bn, about 6% of everything the government spends now goes on these benefits and the costs are only forecast to rise.

Health-related benefits: What are they?


Gurpreet Narwan

Gurpreet Narwan

Business and economics correspondent

@gurpreetnarwan

People with health conditions in this country can apply for two types of health benefits – incapacity and/or disability benefits.

They are very different.

Incapacity benefits are offered to people whose health limits their ability to work.

These are means-tested and only given to people in low-income families.

Applicants have to undergo a work assessment.

If they are judged to have “a limited capability for work-related activity”, they receive a top-up of £4,994 a year above their standard Universal Credit payment.

These people do not have to continue looking for work to receive the award.

Disability benefits help people cover the additional living costs of their disability.

The main one for working-age adults is the personal independence payment, also known as PIP.

PIP is not means-tested.

You can get it even if you have a job and about one-in-six people who claim it have jobs.

Applicants are tested on their ability to complete a range of tasks and, if they meet the criteria, receive between £1,500 and £9,610 a year.

About 45% of people claiming this benefit report mental or behavioural problems as their main condition.

Mental ill health

So what is actually going on?

There are no clear-cut answers but a few theories have been put forward: Some say the pandemic has had a clear long-term impact on our health, particularly our mental health.

The workforce is also getting older, so more of us are living with chronic conditions. Then there’s the cost of living crisis, which might have pushed more people to claim benefits when they may not have needed to in the past.

In the absence of any concrete explanations, however, the data has also fostered suspicions. Some people believe the system is too soft and that “everyday woes” are being medicalised.

Those “everyday woes” are mental health conditions, like depression and anxiety, which are driving the increase in reported disability.

The vast majority- 86% – of people on health-related benefits now have a mental health condition, even if it is not their primary condition.

After a failed attempt to reform disability benefits, the government has ordered a review into the diagnosis of mental health conditions, as well as autism and attention-deficit hyperactivity disorder (ADHD).

The health secretary has spoken about “overdiagnosis”.

Meanwhile, Conservative leader Kemi Badenoch has proposed a “crackdown on people exploiting the system”, including those with “mild” conditions like anxiety or depression.

But on the streets of Bidston, where NHS figures suggest 27.7% of people experience depression (more than double the national average), and where almost 40% of working-age people aren’t even looking for work, these debates seem to skip over the nuances and, in turn, miss the point.

Bidston Rise
Image:
Bidston Rise

A combination of ailments

For someone like Mick, who is so physically disabled that no one can accuse him of making it up, it isn’t his wheelchair that stops him from looking for work but his periodic bouts of depression. The mental anguish – when it hits – is far more disabling than his physical condition. He would know because he experiences both.

Mick and Gurpreet
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Mick and Gurpreet

“Oh, God. If it wasn’t for my dog, I’ll guarantee you, I probably wouldn’t be here now because I was in such a dark place,” he said.

“So many things were going on in my life at the time, and I was constantly in major pain, but I couldn’t get rid of it, no matter what medication I took or anything.

“I wasn’t coming out of my house, I didn’t open my blinds, I didn’t do hardly anything at all, and that’s not me.”

“Mental health problems have gone through the roof recently,” he said. “A lot of people are struggling mentally. I mean, I’ve gone through it myself.”

The trouble with trying to determine “how sick is too sick?” or “how disabled is too disabled?” is that most people report more than one condition, sometimes a mixture of mental and physical conditions.

Read more:
As GDP shrinks, it’s unclear where the economic jump-start will come from
Sickness bill costs £85bn a year, says report warning of ‘economic crisis’

For those on incapacity benefits, which are given to people deemed unfit to work, the average is about 2.7 conditions per person.

It could be a bad back that flares up with depression. Or, hearing loss that triggers anxiety.

Eventually, one might take over the other as the primary condition.

Then there are the agonies of life – perhaps a divorce during the cost-of-living crisis that caused emotional despair.

The medical perspective and the cost of living

Dr Mark Fraser, a local GP at the Fender Way Medical Centre, has seen it all.

“Demand has gone up considerably. An awful big driver of that probably is mental health, but we’re also seeing a general deterioration in people’s health and well-being,” he said.

“So, more chronic disease, certainly more cancers, more people are coming to us with lifestyle-related problems.”

Across the country, spending on health-related benefits accelerated significantly from 2022, when energy bills started to soar and inflation climbed above 11%.

Dr Mark Fraser
Image:
Dr Mark Fraser

Dr Fraser is seeing more patients than he used to and almost all of them – from pensioners to young people – are in debt.

“It’s more expensive just to stay alive now. The cost of food, the cost of energy, the cost of housing, the cost of clothes, have gone up considerably in price over the last five or 10 years,” he said.

“And if you’re down at the lower end of income, the impact on that is massively disproportionate. Where the bread line used to be. We’re down to the breadcrumbs line.

“There’s no doubt that it’s very difficult for you to contemplate healthy living when you’re awake all night worrying about if you can afford the next bill or if you can afford the next shop.”

Increasingly anxious children

The degradation in young people’s mental health has been striking, with local GPs increasingly prescribing antidepressants to young people.

At the Fender Way Medical Centre, doctors are increasingly dealing with anxious children and young adults, some of whom are struggling to function and hold down jobs even when they get them.

Dr Mark Fraser and Sky's Gurpreet Narwan
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Dr Mark Fraser and Sky’s Gurpreet Narwan

Dr Fraser said children might be growing up less resilient but they also appear to have been deeply affected by lockdowns, the loss of routine and the closure of local clubs and leisure centres.

“They don’t see a bright future for themselves. So they are a little bit resigned… there is despair later,” he said.

That despair is also finding its way into his surgery.

“There are more people in acute mental health crises, more often.

“I think that that used to be kind of unusual in general practice for you to be dealing with someone who you were worried wasn’t going to make it through the night if you let them go… a person at the point of ending their life… deciding that there is no point in carrying on, what’s the point?.. And it’s more frequent than it ever used to be.”

A nationwide issue

This is likely to ring true for GPs across the country.

Across the country, the number of people in contact with NHS mental health services has risen, as has antidepressant use.

Then there are deaths caused by alcohol, drugs or suicide, which have increased substantially among the working-age population since the pandemic.

They were up 24% – 3,700 deaths – in 2023 compared with pre-pandemic levels in England and Wales.

‘Deaths of despair’

It’s a phenomenon more closely associated with the US, where deaths linked to opioid use among middle-aged Americans – largely those without college degrees – led economists to first coin the phrase “deaths of despair” about a decade ago.

In Britain, we don’t have the same issues but among 45 to 54-year-olds, these deaths are now a bigger killer than heart disease.

So, while greater levels of reporting and diagnosis might be playing a part in the explosion of reported mental health conditions, there is clear evidence that our mental well-being has deteriorated over the past few years in very real ways.

The actual health conditions only tell one part of the story.

The austerity impact

Economic decline, wage stagnation and loss of community might tell another.

Changes to our benefit system, going back decades, could also be playing a part.

During the austerity years, the country’s safety net was pared back, with the government cutting housing benefits, raising the state pension age for women and lowering the benefit cap.

But they may have been a false economy. New research by the Institute of Fiscal Studies suggests that they nudged more people onto health-related benefits instead.

David Finch, assistant director at the Health Foundation, which funded the study, said: “Cuts to one part of the welfare system can push people to claim health-related benefits, potentially driven by the cuts worsening health.

“This creates a long-term risk that they spend longer out of the workforce and with lower incomes. Future welfare reform must learn the lessons of the past.”

Those lessons are not always immediately obvious but policymakers will have to reach into all corners of society to find them.

Resolving Britain’s problem with worklessness will take more than just a carrot or a stick.

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Ben & Jerry’s directors removed in fresh twist to Magnum row

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Ben & Jerry's directors removed in fresh twist to Magnum row

A co-founder of Ben & Jerry’s has accused its owners of a fresh attempt to “silence” its social mission through the departures of three members of its independent board.

Ben Cohen spoke up after it emerged that its chair Anuradha Mittal, who had previously resisted parent company pressure to remove her, had left Ben & Jerry’s in the wake of new rules imposed by the US brand that included nine-year term limits for board members.

It is understood that two other long-standing directors, Daryn Dodson and Jennifer Henderson, will see their terms expire on 31 December.

Ben & Jerry’s has, since last week, been owned by The Magnum Ice Cream Company (TMICC) which was created by a spin-off from the UK-based consumer goods firm Unilever.

The demerger from Unilever created an ice cream firm with 20% of the global market. Pic:TMICC
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The demerger from Unilever created an ice cream firm with 20% of the global market. Pic:TMICC

Unilever bought Ben & Jerry’s in 2000 but the relationship has been sour since, despite the creation of the independent board at that time which was aimed at protecting the brand’s social mission.

The most high-profile spat came in 2021 when Ben & Jerry’s took the decision not to sell ice cream in Israeli-occupied Palestinian territories on the grounds that sales would be “inconsistent” with its values.

Unilever responded by selling the business to its licensee in Israel.

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Sept: ‘Free Ben & Jerry’s’

A series of rows have followed akin to a tug of war, with Magnum refusing repeated demands by the co-founders of Ben & Jerry’s to sell the brand back.

Magnum and Unilever argue its mission has strayed beyond what was acceptable back in 2000, with the brand evolving into one-sided advocacy on polarising topics that risk reputational and business damage.

Co-founders Jerry Greenfield (right) with Ben Cohen in September 2024. Pic: AP
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Co-founders Jerry Greenfield (right) with Ben Cohen in September 2024. Pic: AP

TMICC declared last month that Ms Mittal “no longer meets the criteria” to serve after internal investigations.

An audit of the separate Ben & Jerry’s Foundation, where she is also a trustee, found deficiencies in financial controls and governance. Magnum said the charitable arm risked having funding removed unless the alleged problems were addressed.

Ms Mittal had accused Magnum of attempts to “discredit” her and undermine the authority of the independent board.

Neither she, or the other two directors set to leave the board, were yet to comment.

Mr Cohen said the three directors had served the company with integrity and courage, calling their departure “another step in Magnum’s systematic effort to dismantle Ben & Jerry’s from the inside and silence the very social mission that gives the brand its value.”

Magnum said it fully supported the steps Ben & Jerry’s was taking to enhance board governance.

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