Former Sainsbury’s boss says cost-of-living challenges ‘more severe than at any time since '70s’

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 spiralling living costs.

King, now a non-executive director at Marks & Spencer, said: “I think supermarkets have always taken very seriously the role that they play in helping their customers, if you like, make ends meet.

“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.”

Last month, Marks & Spencer announced a pay rise for more than 40,000 of its staff, marking the second salary increase this year as the retailer responds to cost-of-living concerns.

The retail giant will also hand a £250 M&S voucher to 4,500 employees at pre-management levels in its stores and support centres.

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.”

Businesses across Britain will see the Government pick up nearly half of their soaring energy bills to ensure they do not go bust, ministers recently announced. The wholesale cost of gas and electricity will be slashed for companies under a scheme which will run for six months.