Read: Actions not words in Business Cost of Living White Paper

There has been talk of a cost of living crisis for months. With the recent news that inflation has risen to 9% - a 40-year high - and that nine in every ten British adults have reported an increase in their cost of living, it is now very much an inescapable truth in all our lives. A recent survey by Politico shows that 64% of people rank it as the most important issue in the UK at the moment, above the NHS and climate change.

The impact on household budgets is huge as people struggle to meet the escalating price of essentials like food, fuel and borrowing costs. In the latest figures from the Office for National  Statistics, a quarter of people reported that they were struggling to pay their bills and 17% had turned to loans or borrowing on credit cards to make ends meet. Those figures will inevitably go up. 

While there is no doubt that even those on middle incomes will be significantly affected, the crisis is likely to affect people on low incomes the most. The IFS has suggested that the inflation rate experienced by the poorest households could be higher still and closer to 11%. More than a third of the most deprived fifth of households in England are already finding it difficult or very difficult to pay their usual bills. That situation will get worse, with the Resolution Foundation estimating that the estimated number of households experiencing fuel stress will hit 5 million this month.

The disproportionate impact on the most disadvantaged households is a depressing echo of what happened during the pandemic when our poorest communities experienced higher infection and mortality rates, as well as worse social and economic outcomes. It was clear then, as it is now, that poverty is a key driver of social inequality. If you are lower income, and living in a deprived area, you are much less likely to have access to opportunity. And weak social mobility is about the challenge that where you start is where you tend to stay, so generation after generation face the same problems in our society.

The current situation presents similar challenges for purpose-led businesses, as growing inflationary pressures as well as a shortage of skilled workers begin to impact business models. The Chancellor has told the CBI that he will cut taxes for firms in the autumn but has called on them to do more in return - invest more, train more and innovate more - to help the economy to grow. 

The Purpose Coalition is already working with businesses to do just that - to develop plans to support their colleagues, customers and communities in the current environment, as the best did during the pandemic.

As part of those efforts, it will be publishing a Cost of Living Best Practice White Paper to highlight the work that is being carried out by Purpose Coalition businesses across the UK. As well as showcasing the best practice that many are already employing, it will also be an opportunity for companies to share insights on what has worked well. The document will set out the actions and initiatives taken by a range of businesses that are having a direct impact on creating a country that has real equality of opportunity.

The Chair of the Purpose Coalition, Rt Hon Justine Greening, said:

“ Businesses were at the forefront of responding to the challenges of the pandemic. That included, for example, ensuring adequate support for staff to work remotely or setting up forums for employees to discuss their wellbeing concerns. It meant communicating and supporting their customers, some of whom had lost their jobs, or reviewing the logistics of collection and delivery. It also included reaching out to the communities they serve - and whose needs they understand - to support them in the most empathetic and practical ways.

Purpose-led businesses can be similarly important in rising to the challenge that these cost of living pressures present to their customers, employees and the wider communities in which they are based. They can be a vital force for good, playing a strategic role in shaping the response to the problems the country is currently facing. We are looking forward to exploring and helping Coalition members to make sure they maximise that positive impact in the weeks and months ahead.”