Rising travel costs have caused many workers to reconsider commuting to the office, although things may change in the winter due to high heating bills, new research shows.
A survey of 500 UK workers said almost half planned to stay away from offices due to the high cost of travel.
A study of thousands of employees in several other countries, including the United States, Australia and Francefound similar results.
A survey of 500 UK workers said almost half planned to stay away from offices due to the high cost of travel. File Picture
Technology company Citrix said its research indicated that one in four UK workers would return to the office more often in winter to cut the cost of heating their homes.
Citrix’s Traci Palmer said, “It’s classic cost-benefit analysis.
“Employees have learned that they can engage and be just as productive working from home, and as fuel prices continue to rise, they wonder if the benefits of being in the office outweigh the cost. time and money associated with travel.
“The key to keeping employees engaged and productive lies in creating work-from-anywhere experiences that are seamless, fuel connection and collaboration, and empower people to perform at their best, no matter their location.”
Two-thirds of UK workers surveyed said their employers should help cover travel costs to the office.
Two-thirds of UK workers surveyed said their employers should help cover travel costs to the office. Above, commuters on the Jubilee line
the bank of england issued a dire warning today that inflation will hit 10% and the economy is about to reverse course – as it has raised interest rates again.
Governor Andrew Bailey presented a gloomy picture for the UK with CPI inflation now expected to peak at 10% in the final quarter of this year – the highest since 1982.
In a brutal blow for families, GDP is expected to fall at the same time – and will be in the red until 2023 as a whole, down 0.25%. The unemployment rate is expected to reach 5.5% by 2025.
Although still historically low, the 0.25 percentage point rise in interest rates takes them to a 13-year high of 1% and will add to the mortgage burden for many Britons who are already struggling to cope with the cost of living crisis.
Economy essentially stagnates for next three years, according to latest Bank of England projections
The darkening picture for the UK includes CPI inflation hitting double digits – the highest level since 1982
Inflation and interest rates both soared in the 1970s – but Professor David Blanchflower said the UK faces a different situation today
The OBR pointed out in March that Britons are facing the biggest drop in real disposable income on record this year
How inflation threatens families and public finances
Inflation has long been considered one of the greatest threats to economies.
In extreme instances, it spun out of control and triggered panic.
The German Weimar Republic effectively collapsed after the value of the mark fell from around 90 marks to the US dollar in 1921 to 7,400 marks to the dollar in 1921.
In Zimbabwe, between 2008 and 2009, the monthly inflation rate was estimated at 79.6 billion percent.
Although inflation had faded in the minds of Britons who had become accustomed to ultra-low interest rates and stable prices, it caused chaos here in the 1970s.
Deregulation of the mortgage market, the emergence of credit cards, and an overheated economy drove the rate to 25% by 1975.
People were rushing to buy goods with their wages after payday because the costs were rising so quickly.
Strikes broke out amid pressure for wages to keep pace with prices.
Unemployment rose as the economy tipped into recession, and the government had to raise interest rates in an effort to prop up the pound and control the surge.
That meant mortgage interest payments hit double digits.
And therefore, servicing the national debt has become a serious problem.
The Bank admitted that the balance of risk on inflation is still that it could be even higher than expected: “We may have to raise interest rates further in the coming months.
At a press conference, Mr Bailey warned that the war in Ukraine had “greatly intensified” inflationary pressures. He said the 1.75% revenue squeeze this year would be the worst on record outside of 2011 and he ‘recognized the hardship it will cause for many in the UK’.
“The main driver is the real income shock that comes from changes in the terms of trade, particularly energy prices, some basic goods and some foodstuffs,” he said.
The headline CPI inflation rate hit 7% in March, the highest since 1992, and some believe it will hit double digits later in the year, the war in Ukraine and the fallout from the pandemic driving up energy and food prices.
And the MPC said today: “Consumer price index inflation is expected to rise further over the remainder of the year, reaching just over 9% in the second quarter of 2022 and an average slightly above 10% at its peak in the fourth quarter of 2022.
“Most of this further increase reflects higher household energy prices following the large increase in the Ofgem price cap in April and the further large increase expected in October.
“The price cap mechanism means that it takes time for increases in wholesale gas and electricity prices, and their respective forward curves, to be reflected in retail energy prices.
“Given how the price cap works, consumer price inflation is likely to peak later in the UK than in many other economies, and may therefore fall back later.
“The expected rise in CPI inflation also reflects higher prices for food, basic goods and services.”
The value of the pound slipped near its lowest level in two years at 1.24 against the US dollar and 0.6% at 1.178 against the euro after the Bank’s gloomy views emerged.
The Bank’s main mission is to control inflation, but there are doubts about the effectiveness of a rate cut as pressures are largely global and the UK economy already appears to be slowing dramatically.
In a grim set of forecasts, he predicted growth would contract in the final three months of 2022 as cost-cutting forces households to limit spending.