A former Sainsbury’s boss has claimed that cost of living challenges are more severe than at any time since the 1970s, as he criticised the government’s policy on energy bills.
Speaking on Sky News, Justin King argued against a blanket reduction in fuel costs and said that a means-tested system could provide greater support to those in need.
It comes after Asda announced it would offer cheap meals in its cafes to help over-60s struggling with spiraling living costs.
I think supermarkets have always taken very seriously the role that they play in helping their customers, if you like, make ends meet,” King, now a non-executive director at Marks & Spencer, said.
“The 1970s… is probably the last time the challenges to households were as great.” However, King stressed that thin profit margins meant that supermarkets could only offer limited support.
“Even if they invested, say, half of their potential profits in this kind of activity it’s only going to make a small dent – but an important dent, I would suggest.”
King also took aim at the Government’s decision to apply the cap to all households, arguing that a more targeted approach would be more effective.
“As a general rule I don’t think the Government should be giving to those people who can afford to pay their bills, so it can give more money to those who are going to struggle. I think targeting is perfectly possible, initially through the benefits system, but through some kinds of means testing.
“It may be painful to household budgets in the short term, but we have to have a different relationship with energy as a society,” he said.
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