Burnley, Blackpool and Blackburn 'hardest hit' by inflation and cost of living crisis

Burnley, Blackpool and Blackburn are the three areas in the country where people have been hardest hit by rising inflation, according to new research.

Findings by Thinktank Centre for Cities also shows that five out of ten cities with the highest energy costs are in the North.

The report - Out of Pocket: The places at the sharp end of the cost of living crisis - suggests that the cost of living crisis is further widening the North-South divide.

Meanwhile, London and Cambridge currently face an annual inflation rate of 8.8% each – meaning Burnley's rate is around 30% higher than in these southern cities.

The research shows that inflation has already reached double figures in urban areas in the North, where rates are rising significantly faster than in the South. It means those living in northern cities are taking a harder hit to their finances.

Latest estimates show inflation has made workers in the North £133 a month poorer on average; while workers in the South have lost around £103 a month - adding up to a difference of £360 a year.

'Poorly insulated housing and more reliance on cars'

Centre for Cities says much of the disparity between the North and South can be attributed to the fact that the North, Midlands and Wales have higher proportions of poorly-insulated housing and more reliance on cars, which leaves these areas exceptionally vulnerable to increasing fuel prices.

In Burnley, where more than 70% of homes have an energy efficiency rating below band C, annual energy bills in 2021 were £1,272 on average. This is significantly more than southern cities, such as Milton Keynes, where 50% of homes have high energy efficiency and yearly bills were £889 on average.

Centre for Cities Chief Executive Andrew Carter said: "The entire country has been impacted by the cost of living crisis but our research clearly shows some areas are being hit much harder than others.

"Worryingly, the North, Midlands, and Wales are struggling with higher rates of inflation that are further squeezing finances and leaving their residents hundreds of pounds worse off.

"These disparities prove that levelling up our cities to tackle spatial inequalities and futureproof the economy is more important than ever."

In May, the then chancellor Rishi Sunak announced a package to help ease the cost of living crisis but the thinktank said more needed to be done to support vulnerable households.

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