Inflation rises for first time in five months - but one-off factors blamed
UK inflation has risen for the first time in five months, increasing to 3.4% in the year to December. The rise, though higher than expected, is widely attributed to temporary factors rather than a sustained upward trend. The Office for National Statistics said higher airfares over the Christmas and New Year period were a major contributor, alongside increased tobacco prices following a Budget tax rise. Food prices also edged up, notably for bread, cereals, and vegetables, adding pressure on household budgets. Despite the increase, analysts believe inflation is likely to fall again in the coming months. The Bank of England, which ended 2025 by cutting interest rates to 3.75%, is expected to proceed cautiously when it meets in February, with gradual cuts anticipated later in the year. The Government says reducing the cost of living remains a priority, while critics blame high taxes and borrowing for continued pressure on families. Compared with European neighbours, UK inflation remains relatively high, though forecasts suggest a decline is likely soon.
Government launches £15bn Warm Homes Plan
The Government has launched a £15 billion Warm Homes Plan aimed at expanding solar power, heat pumps, and other green technologies across households over the next five years. The scheme seeks to triple the number of homes with solar panels while increasing uptake of low-carbon heating. It includes a mix of grants and low or zero-interest loans, available regardless of household income. The Boiler Upgrade Scheme will be extended until 2029/30, offering grants of up to £7,500 for air-source heat pumps. An additional £600 million has been allocated to fully fund solar panels and battery storage for low-income households. It is estimated that combining solar, battery storage, and heat pumps could save an average household up to £1,300 a year. The plan is also expected to boost demand for skilled installers, creating opportunities for green-tech businesses and workforce training. Ministers say the programme supports decarbonisation, energy security, and cost-of-living relief, though experts stress the importance of improving insulation alongside new technologies.
MPs debate removal of immunity provision from new legislation
MPs are debating plans to remove the immunity provision from legislation addressing unresolved crimes from the Northern Ireland Troubles. The Government is seeking approval for an order to overturn elements of the previous Legacy Act, including a scheme that would have granted immunity from prosecution to individuals involved in Troubles-related offences in exchange for cooperation with a truth recovery body. That scheme was ruled unlawful and never implemented. Northern Ireland secretary Hilary Benn said the changes are necessary to restore trust among victims’ families and communities who strongly oppose immunity for those responsible for violence and murder. The order would also lift restrictions on bringing new civil claims, reinstating the right of families to seek justice through the courts. In response to concerns among veterans’ groups that this could expose former members of the armed forces to repeated or unfair legal action, the Government intends to introduce safeguards for veterans, including limits on reinvestigation, health protections, anonymity provisions, and alternative ways of giving evidence.
Incoming Archbishop defends £100m slavery reparations fund
The incoming Archbishop of Canterbury, Sarah Mullally, has defended the CofE’s £100 million slavery reparations fund amid growing political and internal opposition. Writing to MPs and peers calling for the plan to be scrapped, she said the Church must address its historic links to African chattel slavery with honesty, responsibility, and Christian integrity. The fund is intended to provide seed funding for community projects and enterprises serving those affected by the legacy of slavery. Critics, including several Conservative MPs, argue the money should instead support parish ministry, church buildings, and historic records, warning of legal and financial risks. Dame Sarah responded that the initiative does not reduce parish funding, noting that £1.6 billion has been committed to parishes over the next three years. However, polling suggests significant concern among churchgoers, with many saying parish ministry should take priority and warning they may redirect giving if the fund proceeds.
