Is it just us, or did you finally feel like life was starting to get back to as normal as possible, for it to all come crashing back down as a major cost of living crisis looms over the nation?
We’ve been subject to announcements of rising costs to everyday living and the changes will affect everyone, but especially those in the lowest income bracket. With gas prices steadily increasing as well as the totals at the till we see with each weekly shop, people aren’t far off being forced to choose between heating their homes or forgoing a meal.
What are we going to see rise?
- Energy bills
As we emerge from the pandemic and are coming out of the winter months, right now we’re seeing a once in a 30-year event with volatile gas prices affecting everyone around the world.
As a result, the UK’s energy regulator, Ofgem, announced that the energy price cap will rise by 54% from 1st April 2022, which is expected to add £693 per year to the average household bill.
Not only will this affect consumers, but the wholesale cost increases have greatly impacted suppliers and put them under immense strain, so much so that since January 2021 29 suppliers, who served 4.3 million households, exited to market in Great Britain,
If you’re worried or struggling to pay your energy bills, then contact your energy supplier as soon as possible to make sure they can support you in any way they can.
- Petrol prices
At the start of the pandemic, oil prices slumped, but as we emerge out of it, demand has skyrocketed and has hit a 7-year high.
The cost of petrol at UK pumps has reached a new record high of £1.48 a litre as well as Diesel at a record high of £1.51 a litre. Yet only two years ago fuel was at a low of around £1 a litre.
And unfortunately, due to Russia’s full scale invasion of Ukraine, we are no doubt going to see oil prices surge further, as the UK Government plans to phase out its oil imports from Russia.
- Interest rates
For the first time in three years The Bank of England has unexpectedly raised interest rates from 0.25 to 0.5 per cent in an attempt to curb growing inflation, meaning an increase in cost for consumers who are borrowing money.
Households with variable-rate mortgages will feel the financial pressure that comes with the increase and will see an increase in any payments that include interest, although for most homeowners the impact won’t be immediate.
The rise is temporary in order to keep inflation rates under control; however, it means a further squeeze on household budgets at a time of rising bills.
End of Pandemic Support
As we’re emerging out the other side of the pandemic, the government is unwinding the support given to businesses to help with the impact of coronavirus.
With public spending and borrowing having increased across the globe during the pandemic, this contributed to tax rises and increased the cost of living, while most people’s wages remain the same.
How we can help you
With the cost of living increasing for everyone, it is easy to feel overwhelmed and stressed, especially for those already struggling with mounting debts. Even with Government support such as one-off grants, budgeting loans and council tax rebates, for those who are eligible, households will still struggle to stretch their budgets are far as they need them to.
The earlier you tackle debt problems, the easier they are to deal with. If your debts are increasing, and you’re already feeling the pinch with the rising cost of living, speak with one of our advisers at My Debt Plan. We can help point you in the right direction and look at debt solutions that can reduce your total debt, relieving stress and allowing you to take back control of your finances.
If you’re already on a debt solution with us, make sure you complete your annual review and factor in your rising costs.
Get in touch with our team on 0161 8260 585 or request a call back and we’ll get in touch with you as soon as possible.