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Households will face a £6,000 rise in bills this winter as energy costs, food prices and mortgage payments soar.
There are growing fears that by the end of the year, millions of families could still fall into poverty in the worst cost of living crisis since the 1950s.
The Center for Economic and Business Research (CEBR) estimates that average spending will increase by £4,610 a year between now and December.
It means annual household bills will be £6,219 more expensive in December compared to the same time last year.
The increases will be even higher for those with larger homes and larger families.
The jump is mainly driven by energy bills. The CEBR expects ‘housing, fuel and power’ bills to be £2,724 more expensive in December than last year.
(Stock Photo) Annual household bills are expected to be £6,219 more expensive in December compared to the same time last year
Household spending on food and non-alcoholic drinks is expected to skyrocket by £821 a year
The figures are based on the assumption that watchdog Ofgem’s price cap will rise to £3,359 in October, as forecast by analysts Cornwall Insight.
Meanwhile, household spending on food and non-alcoholic drinks is expected to rise by £821 a year, while the cost of ‘miscellaneous goods and services’ – including everything from insurance premiums to toiletries – is expected to rise by £129.
Analysts say ‘other expenses’, including mortgage payments and council taxes, will rise by £233 in the 12 months to December.
If families want the same quality of life as they do now, they will have to spend £188 more than last year on eating out and £342 more on ‘leisure and culture’.
The data is based on the most recent figures on average food and living costs from the Office for National Statistics, as of June.
It assumes that an average household consists of 2.3 people and that households do not change their spending patterns during that time. Laura Suter, of investment firm AJ Bell, said: “We’ve seen a big rise in costs this year, but anyone hoping the worst is over may have a rude awakening.
“No one is immune to these terrifying price hikes that will hit every home across the country.”
At the same time, major banks are betraying savers to the tune of £10.4 billion a year by failing to pass on interest rate hikes.
This does not take into account the Bank of England’s rise in this week’s key rate, meaning the actual figure is likely to be even higher.
After more than a decade of bottoming prices, it is a bitter blow to money savers.
Earlier this week, banking governor Andrew Bailey said higher rates were passed on to borrowers much faster than to savers. “It’s important that savers get the returns they should get,” he added.
According to data from the Bank of England, there is about £993.79 billion in easily accessible accounts. Most of it is with big banks.
In December, when the base interest rate was at a record 0.1 percent, the average savings deal also paid out 0.1 percent.
By June, the base rate had risen to 1.25 percent. But in the same time, the typical rate paid to savers had risen to just 0.2 percent, the Bank’s data showed.
It means savers have missed out on a potential gain of 1.05 percentage points, worth a total of £10.4 billion a year.
Even after the base rate rose to 1.75 percent on Thursday, most major providers have not yet passed on meaningful hikes to savers.
Some banks, including Lloyds and NatWest, have increased their net interest margins — the difference between what they earn from borrowers and what they pay to savers — by 10 percent or more.
James Blower, of consultant Savings Guru, said: “It’s a scandal that savers get so little from the big banks.”
Barclays said it would increase tariffs on some of its products, but did not provide details. Santander and NatWest are also raising rates on some accounts, but at levels well below the rate hike.
Electricity theft reaches new peak due to rising fuel prices
Electricity theft hit record levels last year as high bills fueled lethal manipulation.
Bypassing meters and disrupting supply lines is punishable by up to five years in prison.
Yet figures from the Home Office show that in the year to March, police forces in England and Wales received 3,600 reports of ‘unfair use’ – a 13 percent increase from 2020-21 and the most since comparable records began in 2012. -13. From January to March, there were about 1,100 – almost double the number in the same period in 2019-20. Stay Energy Safe, operated by Crimestoppers, warned that tampering with a meter could lead to wires overheating, property damage and possible loss of life.
It said the crime costs energy companies at least £440 million a year – costs that are then passed on to customers.
Ofgem said ‘under no circumstances should consumers attempt to connect electricity meters themselves’. But the National Energy Action (NEA) campaign group said the cost of living crisis forced people into “desperate situations.”
Peter Smith of the NEA said: ‘This is not only illegal, but also dangerous, and it is horrific when the crisis forces households to try to keep the lights on. And this is happening now, before winter and cold weather strike.’
In May, the NEA predicted that the average annual energy bill could be £2,800 as of October. This figure is now expected to be £3,358.
In the two countries, 57 percent of electricity theft cases closed last year had not identified a suspect, while 30 percent were discontinued due to evidence issues. Only 7 percent led to an indictment or subpoena.
The government said it is making £37 billion available to help households with living expenses.