Tesco boss says 'worst is to come' as a 5% food hike is set to "squeeze" Britain's poor

The “worst is still to come” for hard-up Brits, is the bleak message from the boss of Tesco who warns a 5% hike in the weekly shop will “squeeze” the poorest in Britain.

Food prices in the supermarket giant’s rose only 1% last quarter, Chairman John Allan said, but are likely to be rising by 5% by the Spring.

As the hike comes at the same time as a National Insurance rise and a £693 rise in the average family’s annual energy bill, to £1,971, he admitted some people will “of course” have less to spend on luxuries.

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And he said the rise - offset by only £350 of government help, of which £200 has to be paid back - “is going to squeeze the hardest-up still harder” reports The Mirror.

It came as Tory Business Secretary Kwasi Kwarteng appeared to admit young Brits face paying back the government’s £200 energy bills loan - without ever having actually received it.

All British households who pay an electricity bill will get £200 off from October this year. But the money then has to be paid back at £40 a year for five years from 2023/24 to 2027/28.

Because it is set to be repaid out of all energy bills, campaigners fear people in their late teens, or who have a “bills included” landlord, will end up paying £40 a year without seeing the £200.

Mr Kwarteng told Sky News: “The principle has been established that the Treasury is going to give £200 and then the money will be recouped over five years.

“I can’t tell you what the price will be in five years’ time but it will be recouped off that.”

Mr Kwarteng added the National Insurance rise in April “has been settled” despite furious Tory calls to