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The UK is currently seeing its worst cost of living crisis for decades, with inflation at a 40-year high and wages decreasing.

The UK is currently seeing its worst cost of living crisis for decades, with inflation at a 40-year high and wages decreasing.

To tackle the rising energy costs that skyrocketed the price of living in the UK, the government has announced on the third of February a package of support in various schemes—energy bills discount, Council Tax rebate, and discretionary funding—worth £9.1 billion for the financial year 2022-23.

You might be wondering what windfall tax is and why it is being imposed in the UK? The answer to this riddle is that a windfall tax is levied against companies deemed to have made excessively high profits, or a ‘windfall’, from circumstances they did not engineer.

According to the Office for National Statistics, the United Kingdom’s consumer increase in price reached 7% last month, exceeding economists’ prognostications for the sixth month in a row.

In the Spring Statement, the Chancellor gives the country a report regarding the economy’s wellbeing, answering the cutting-edge gauge from the Office for Budget Responsibility. The Spring Statement also offers the public authority a chance to consider longer-term difficulties to the UK’s general funds and begin counselling on the best way to address them.

Ongoing conflict in Ukraine has shackled millions. Individuals are finding refuge to save their existence through horrors of Russia’s brutality. But, mood of compassion of the UK residents has restored faith in humanity as they are welcoming displaced Ukrainians to live in their homes.

Next to the pandemic, and whilst the globe is still getting back on track from the pandemic’s financial blow, the Russia-Ukraine war is now the leading cause of market fear. Investors have sold their stocks at the escalation of the crisis. Foreign investors will have to prepare for the worst.

With rising energy prices, the UK government is set to spend £9.1billion as Energy Bills Rebate to support lower-income households. What’s more, the circumstance will possibly deteriorate when the energy cost cap expansions in April.

The Department for Work and Pensions reported that 2,000,000 people would have their pay increased to £1,000 per year beginning November 24, 2021, as citizens received a practical two billion tax cut on the lowest wage to purchase.