Teesside company offers 'cost of living bonus' amid surging prices
Report by Jonny Blair
A Teesside builders merchant has paid its staff a bonus to help cover rising prices during the cost of living crisis.
Joseph Parr Middlesbrough, based in Stockton, gave each of its 58 workers a £750 one-off payment it is calling a 'cost of living bonus'.
Manager David Anderson told ITV News Tyne Tees the decision reflects the severity of the situation.
"As time’s gone on, the cost of living has now gone through the roof," said Joseph Parr manager David Anderson.
"Well-publicised is the gas and electric and petrol and diesel, but it’s also food and road tax and car tax and national insurance - all are these are costs that the staff are going to incur.
"Even though they’re well paid, in terms of our industry, this is going to affect everyone.”
The decision came as the biggest jump in domestic energy bills in living memory came into effect. Charities warn that 2.5 million more households are set to fall into “fuel stress” and supplier websites remained unresponsive to customers.
The energy price cap for those on default tariffs who pay by direct debit is rising by £693 from £1,277 to £1,971 from 1 April.
Prepayment customers will see a bigger jump, with their price cap going up by £708, from £1,309 to £2,017. The regulator was forced to hike the energy price cap to a record £1,971 for a typical household as gas prices soared to unprecedented highs.
Staff at Joseph Parr say the payment will make a big difference to their lifestyles and stress levels over the next few months
"It makes you feel very valued by the company," said Simon Hooton, who works in sales. "It comes as a surprise but a very welcome surprise. It’ll go towards household bills… It will make a big difference."
"I’m pretty delighted," added Sean Boland, who also works on the sales counter. "I live quite a journey to work everyday, so for me the extra fuel costs are going to help out so much."
Mr Anderson went on to urge other bosses to do the same, saying this will have an ultimately positive impact on the economy and therefore their businesses.
“We need people to keep spending money… we need the economy to keep going," he said. "So, if there are companies this year who can take a little less profit this year and follow suit and give their staff a little bit extra, that will make all the difference."
For expert analysis and insight on the biggest stories listen to our podcast to find out What You Need To Know
Responding to accusations that they are not doing enough to tackle the crisis, a Government spokesperson said:
“We understand that people are struggling with the rising cost of living – we can’t shield everyone from the global challenges we face but we’re putting billions of pounds back into the pockets of hard-working families across the UK.
"We’ve taken action worth over £22 billion next financial year to help with the cost of living including a 5p cut to fuel duty for the next 12 months, increases to National Insurance thresholds that will save a typical worker £330 per year, and an extra £500 million for the Household Support Fund to help those most in need.
"We’re also helping low income families keep more of what they earn by reducing the Universal Credit taper rate, boosting incomes by £1000 per average full time worker by increasing the National Living Wage and providing over £9 billion to help with rising energy bills.”