Rising costs

Households face ‘cost of living catastrophe’

debt
Higher bills loom in the new year

Households face a ‘cost of living catastrophe’ next year thanks to soaring energy bills, tax increases and weak wage growth, according to a think tank report.

The Resolution Foundation warns that families face a hit of at least £1,200 as inflation reaches 6% and wholesale gas prices continue to rise.

Its quarterly Labour Market Outlook says 2022 will be the “year of the squeeze” on people’s finances. Analysts predict that households could pay double what they did 12 months ago.

April is expected to be a crunch point, when consumers are hit with huge rises to gas and electricity bills at the same time as a hike in national insurance contributions. Council tax is also likely to go up. Rail fares will rise by an average 3.8% from next month.

The foundation calculated that the typical energy bill would rise by about £600 a year. Others forecast the government’s energy price cap will jump by more than £700 to around £2,000 a year for the average household.

One Comment to Households face ‘cost of living catastrophe’

  1. One way to cut energy costs would be for all the energy firms to have a maximum wage of £52000 per year and no bonuses. After all if a person can’t manage their home on £1000 per week why would anyone trust them to manage anything.

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