Rabina Khan is a writer and a former councillor and special adviser in the UK House of Lords
June 02, 2022
Jonathan Brearley, the chief executive of Ofgem, the UK’s energy regulatory body, recently announced that his organisation is expecting an energy price cap of £2,800 in October, an increase from the current £1,971. Adam Scorer, chief executive of charity National Energy Action, said the predicted rise will "strike terror into the hearts of millions of people who are already unable to heat their homes".
European countries obtain approximately 40 per cent of their gas directly from Russia, while the UK imports less than 5 per cent of its gas from Russia, but its prices are nonetheless influenced by fluctuations in global markets. The UK also imports approximately 8 per cent of its oil from Russia, amounting to £4 billion in 2021. These prices have soared as a result of Russia’s invasion of Ukraine and Western governments’ subsequent economic ordeals. In April, Russian President Vladimir Putin demanded that “unfriendly countries” pay for their gas in roubles from Russian accounts to avoid having their supplies cut off. Gas deliveries have already been suspended to Finland for their refusals to pay in the currency.
It is not just energy prices that have risen exponentially, but food prices, too. Ukraine is the world’s largest exporter of sunflower oil and is also a major producer of maize and wheat. The UN Food Prices Index, which measures the average prices of staple foods, reported that food prices are at their highest in 60 years, when records began.
East End resident Rachel who was diagnosed with cancer and who also cares for her severely disabled son with a spinal injury is struggling with the cost of food. She said: “How are we supposed to eat with food costs rising not by a penny but by 80 per cent? We are eating the bare minimum and living on basic food, which affects my health and that of my son. Luckily it's summer so I don’t use the lights. In the late evening I don’t turn on the lights and if I watch TV I use that as the light. I’m charging up my key meter to over £120 a month for me and my son – and that’s just electricity. I’m paying more for gas because I need to keep warm, even in the summer, due to our medical problems. I can’t bear to think how we are going to keep warm when the cold weather arrives.”
The UK's prime minister, Boris Johnson, is facing calls to step down over the "partygate" scandal. Reuters
Rachel and her son are just one of many thousands of families across the UK who cannot afford to eat. A survey by YouGov, a leading pollster, suggests that of the 10,674 adults questioned, one in seven were living in homes where people have skipped meals or reduced sizes due to expense. The Office for National Statistics reported that almost 90 per cent of households stated that their cost of living had increased in March as a result of rises in fuel, food and borrowing costs.
The cost of living crisis is all about survival. Millions of households have been plunged into debt, leaving many at risk of losing their homes and livelihoods, and affecting their mental and physical wellbeing. Dr Andrew Goddard, president of the Royal College of Physicians said: “The cost of living crisis has barely begun, so the fact that one in two are already experiencing worsening health should sound alarm bells, especially at a time when our health service is under more pressure than ever before.”
Earlier this month, Tory MP Lee Anderson – who earns £84,144 – said he had proven that people can make meals for 30 pence, demeaning the struggles of British families. Boris Johnson’s Government has been heavily criticised by all sides of the political spectrum, including some Tory MPs, for his catastrophic failure to address the escalating cost of living in the UK.
The question is why should a family in Britain go to such lengths to survive when the Conservative government breaks Covid-19 rules that they created, while lecturing poor families to live within their means?
Labour Party leader Sir Keir Starmer visits a food bank in Glasgow. Getty
Liberal Democrat leader Ed Davey was the first party leader to call for a windfall tax on oil and gas companies over seven months ago, demanding that their excess profits help vulnerable people with spiralling energy bills. Even Tory MP Julian Knight said the Prime Minister needs to “wake up” and listen to his party on tackling the rising cost of energy. Engulfed in its own “partygate” Covid-19 rule-breaking saga, the Prime Minister and his Chancellor scrambled to announce a new package of emergency measures on Thursday, which intends to target pensioners, the poorest and the “squeezed middle” households.
The UK’s increasing cost of living crisis has been caused by multiple issues occurring simultaneously, including Brexit, Covid-19, the Ukraine crisis, rising taxes and inflation, all of which have impacted the price of essential items and services pushing people into poverty.
They say that we should look for opportunities out of crises. It's time for the UK Government to stop doing so. It is time to look for opportunities to take our struggling children and young people, our families, our older citizens and all our communities out of this fear of whether we turn the lights on or not, whether we keep warm and what we eat. To the UK government I say: “Ask not what your country can do for you — ask what you can do for your country.
BMW M5 specs
Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor
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The specs
Engine: 3.8-litre twin-turbo flat-six
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MATCH INFO
Uefa Champions League semi-final, first leg
Bayern Munich v Real Madrid When: April 25, 10.45pm kick-off (UAE) Where: Allianz Arena, Munich Live: BeIN Sports HD Second leg: May 1, Santiago Bernabeu, Madrid
EA Sports FC 26
Publisher: EA Sports
Consoles: PC, PlayStation 4/5, Xbox Series X/S
Rating: 3/5
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed
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Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
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TEACHERS' PAY - WHAT YOU NEED TO KNOW
Pay varies significantly depending on the school, its rating and the curriculum. Here's a rough guide as of January 2021:
- top end schools tend to pay Dh16,000-17,000 a month - plus a monthly housing allowance of up to Dh6,000. These tend to be British curriculum schools rated 'outstanding' or 'very good', followed by American schools
- average salary across curriculums and skill levels is about Dh10,000, recruiters say
- it is becoming more common for schools to provide accommodation, sometimes in an apartment block with other teachers, rather than hand teachers a cash housing allowance
- some strong performing schools have cut back on salaries since the pandemic began, sometimes offering Dh16,000 including the housing allowance, which reflects the slump in rental costs, and sheer demand for jobs
- maths and science teachers are most in demand and some schools will pay up to Dh3,000 more than other teachers in recognition of their technical skills
- at the other end of the market, teachers in some Indian schools, where fees are lower and competition among applicants is intense, can be paid as low as Dh3,000 per month
- in Indian schools, it has also become common for teachers to share residential accommodation, living in a block with colleagues
The specs
Engine: 4.0-litre V8 twin-turbocharged and three electric motors
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”