Experts warn that household bills have skyrocketed by more than £ 1,500 a year, and families are on the verge of the biggest spending pressure in nearly a decade.
- A “perfect storm” of price and tax increases could push households to the limit. ”
- Energy prices skyrocket this week, attracting suppliers
- And inflation jumped from 2% in July to 3.2% last month.
Experts warn that the crisis in living expenses will cause the average household bill to skyrocket by more than £ 1,500 a year.
With invoices and prices constantly rising, families are now at the pinnacle of the greatest spending pressure in almost a decade.
Money experts said the “worst case” of prices and tax increases could push households across the country to the limit.
With invoices and prices constantly rising, families are now at the forefront of the biggest spending pressure in almost a decade.
Energy prices have skyrocketed this week, suppliers are attracting transactions and predict that the average household will soon face an additional charge of £ 400 or more per year on electricity bills.
A year ago, the best one-year fixed deal on the comparison website Energy Helpline was £ 855, but last night the cheapest available was more than double the £ 1,895.
Gasoline prices have also skyrocketed, and the cost of filling a 50-liter tank has risen from £ 56.55 to £ 67.30 since August last year.
Food and beverage prices in shops and supermarkets rose 1.1% in August as retailers struggled with supply shortages and rising costs. This is the highest since 2008.
Long winters meant that European countries built less gas inventories during the summer. Russia has also reduced its gas supply to Europe. Many believe this is a way to encourage leaders to switch to Nord Stream 2, a controversial pipeline.
Boris Johnson’s health and social care levy will add 1.25 percent points to workers starting next year, while train fares, telephone and internet bills, and other daily expenses are also increasing. It means you have to pay.
There are also concerns about a high council tax hike, and there could be even worse news on Prime Minister Rishi Sunak’s budget next month.
Insurance experts warned that premiums would rise in January, when companies are banned from booking the best deals for new customers.
Inflation surged from 2% in July to 3.2% last month, the largest surge since 1997.
The perfect storm that soared prices
The combination of events has caused wholesale gas and electricity prices to skyrocket. This means that household energy prices will skyrocket.
- A fire earlier this week shut down the key cables that power France to Britain. Kent’s IFA interconnect can deliver enough power to 2 million households, but it won’t be fully operational until March next year.
- Long winters mean that European countries have built less gas inventories during the summer. Russia also provides less gas to Europe.
- The UK has little gas storage capacity and is at the mercy of imports.
- With the recovery of the Asian economy, the prices of tankers that transport liquefied natural gas have skyrocketed, and delays in shipments have exacerbated this. The lack of wind power these days means that renewable energy generation is low. Coal-fired power plants must now be lit so that Britain can keep it on.
The numbers compiled by Hargreaves Landsdown for the Daily Mail show that the average family cost could increase by £ 132 a month or £ 1,584 a year. This is the largest increase in household spending costs since 2012.
Sarah Coles, a personal finance analyst at an investment company, said:
Energy companies have withdrawn almost all fixed transactions from sales on price comparison sites this week as wholesale gas prices hit record highs. Others believe that soaring electricity prices mean that some suppliers will not be able to survive the winter.
Jane Lucy of Labrador, an automatic switching site, said:
Energy regulator Ofgem’s price cap protects approximately 15 million households at standard variable rates. The cap has already risen by £ 139, preventing the average standard variable tariff bill from exceeding £ 1,277. But experts say the rise in wholesale prices may require an additional £ 280 increase in the New Year.
Myron Jobson, Interactive Investor’s Head of Personal Finance Campaigns, said: Powering the washing machine and taking a hot shower this winter will be even more expensive.
Laura Suter of investment firm AJ Bell said:
Household bills skyrocket over £ 1,500 per year
SourceHousehold bills skyrocket over £ 1,500 per year