Cost-of-living challenges ‘more severe than at any time since 1970s’

A former Sainsbury’s boss has claimed that cost-of-living challenges are more severe than at any time since the 1970s, as he criticised the Government’s policy on energy bills.

Speaking on Sky News, Justin King argued against a blanket reduction in fuel costs and said that a means-tested system could provide greater support to those in need.

It comes after Asda announced it would offer cheap meals in its cafes to help over-60s struggling with spiralling living costs.

Mr King, now a non-executive director at Marks & Spencer, said: “I think supermarkets have always taken very seriously the role that they play in helping their customers, if you like, make ends meet.

“The 1970s… is probably the last time the challenges to households were as great.”

However, Mr King stressed that thin profit margins meant that supermarkets could only offer limited support.

“Even if they invested, say, half of their potential profits in this kind of activity it’s only going to make a small dent – but an important dent, I would suggest,” he said.

On Thursday, Asda announced that its cafes would sell a bread roll, soup and cups of tea and coffee to pensioners for £1 over November and December as they “worry about how to keep themselves warm”.

It came a few days after a surge in energy prices, which saw the average household’s annual bills rise by almost £600.

According to research from Age UK, 2.8 million pensioners will not be able to properly heat their homes this winter despite the energy price cap being frozen.

Mr King also took aim at the Government’s decision to apply the cap to all households, arguing that a more targeted approach would be more effective.

“As a general rule I don’t think the Government should be giving to those people who can afford to pay their bills, so it can give more money to those who are going to struggle,” he said.

“I think targeting is perfectly possible, initially through the benefits system, but through some kinds of means testing.

“It may be painful to household budgets in the short term, but we have to have a different relationship with energy as a society.”