Umbrella company contractors warned inflation set to increase
Contractors working with umbrella companies have been warned they are likely to feel the negative effects of inflation for the foreseeable future, as the rate is set to continue rising.
The latest figures from the Bank of England, released this week, show inflation now sits at 3.7 per cent, the 13th month the rate has been above the Bank's two per cent target.
Umbrella company contractors are likely to see a burden placed on their finances from this rate, compounded by recent increases in VAT petrol prices and continuing low interest rates, which are affecting people's savings.
According to Moneysupermarket.com, over the past 12 months inflation means Brits have seen their savings eroded by £331.
The website predicted if inflation continues growing at this rate the Bank's Monetary Policy Committee could be encouraged to increase the base rate from its historic low of 0.5 per cent.
Meanwhile, Age UK estimated the average Brit over the age of 55 is £600 a year worse off because of inflation.