Budget measures may push up shop prices

Shop prices could rise next year as companies pass on higher national insurance (NI) costs to shoppers, reports suggest.

From next April, employers will have to pay 15% NI on salaries above £5k instead of 13.8% on salaries over £9,100.

The change, revealed in Chancellor Rachel Reeves’ first budget, is expected to raise £20bn a year for the government.

Sainsbury's CEO Simon Roberts says that the move will cost the supermarket chain £140m, while M&S believes it’ll cost them £120m.

What does this mean for shoppers?

Roberts says Sainsbury’s doesn’t have “the capacity to absorb” these costs, so we should be prepared to potentially spend more at the checkout.

Independent analysis by the Office for Budget Responsibility suggests that the budget announcements may push inflation beyond earlier predictions – something Roberts said was “difficult to disagree with”.

Can I save money on my food shopping?

Being smart with your weekly grocery shopping can save you money and keep your meals tasty and budget-friendly.

Check out our best tips for filling up your fridge and pantry:

• Join loyalty schemes: Supermarkets often have loyalty programmes. You can earn points, discounts, or cashback, which gives you more value for your money.
• Buy in bulk: Stock up on essentials when prices drop. Long-lasting items are best for bulk buying.
• Visit local markets: They usually have fresh produce at better prices than supermarkets. Plus, you might discover new ingredients to try.
• Get creative in the kitchen: Use affordable staples like rice, beans, and lentils. They are budget-friendly and healthy.
• Meal prep: Preparing meals in advance helps avoid impulse buys and reduces food waste.
• Look for seasonal produce: Fruits and vegetables in season are often cheaper and taste better.
• Use helpful apps: Apps like Too Good To Go let you buy leftover food from restaurants and shops at a lower price, while Olio connects you with neighbours sharing free food. Both options help you enjoy meals without spending much.
• Consider food banks: If you’re in need, food banks provide free food. Reaching out to one can really help.