UK ministers’ efforts to reduce soaring food shopping bills “won’t touch the sides” without measures to make small grocery stores more affordable for low-income households, the chancellor has been warned.
Which?, the consumer group, has written to Jeremy Hunt over concerns that a blanket approach to lowering supermarket bills will not address the problem of accessibility to affordable food, after reports that ministers are considering a voluntary price cap scheme.
A study comparing the availability of 29 everyday items during visits to large and smaller stores by Which? found that budget-range items were available less than 1% of the time at convenience branches such as Tesco Express and Sainsbury’s Local. By comparison, the study of 123 Asda, Morrisons, Sainsbury’s and Tesco stores found that on average the biggest shops carried 87% of the value items.
Meanwhile, a recent survey by the organisation found that two-thirds of low-income families relied on these stores. A shopper buying groceries each week at a Tesco Express would spend an extra £800 a year compared with at a larger Tesco store or online, Which? found.
In the letter to Hunt, Which?’s director of policy and advocacy, Rocio Concha, said the cost of food was higher for those without access to larger stores and it was unclear whether an intervention such as a price cap would help consumers.
Rishi Sunak has set a 2023 target to halve inflation but the goal has been undermined as inflation has remained stubbornly high, with the price of food a major factor.
Hunt met food manufacturers last month to raise concerns over the impact of grocery price inflation on squeezed households. The latest data from the British Retail Consortium showed annual food inflation eased in May from 15.7% to 15.4%, even as the overall rise in shop prices hit a fresh high.
At a recent meeting between the chancellor and supermarket bosses, which an official called “a brainstorming session”, the idea for a price cap scheme that UK supermarkets could opt into was reportedly floated.
However, officials have said the government has no plans to cap the price of food, and that any resulting scheme would not be mandatory.
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Which? called on the government to push supermarkets to agree to stock a range of budget foods in smaller stores.
Sue Davies, Which?’s head of food policy, said: “The government is right to be looking at how to support people with soaring food costs but unfortunately without addressing the issues hitting shoppers, and particularly those on low incomes relying on expensive convenience stores, these food price measures won’t touch the sides.
“Ministers should prioritise securing commitments from supermarkets to stock a healthy and affordable budget range across their stores, including convenience stores and ensuring pricing is easily comparable so people can see which items offer the best value.”