Austerity pioneer David Cameron tonight warned 2022 will be “a very tough year” as Brits are hit by rocketing inflation, soaring energy bills and a National Insurance hike.
The ex-Prime Minster, who presided over years of frozen wages and benefits, warned a “huge squeeze on living standards” is coming for ordinary Brits.
He joined Tory voices hinting Boris Johnson should rethink his hike on National Insurance, saying if you keep “people's taxes down, you help them through the cost of living crisis.”
But he defended his own austerity approach - which will leave average real wages in the UK lower in 2026 than 2008, according to analysis.
Mr Cameron told Andrew Marr on LBC Radio: “We're certainly looking at a huge squeeze on living standards when you see what'e happening with oil prices and petrol prices, you see what's happening with people's heating bills. It's going to be a very tough year.”
He added: “I faced this a bit in 2010, when inflation did rise up - ‘what can we do to help people’, that’s the question at this difficult time. How do we address cost of living pressures.
“I’m often criticised for the difficult decisions we made on the economy, but you’ve got to try and keep the cost of government down.
“Because ultimately if you can keep the cost of government down, people's taxes down, you help them through the cost of living crisis.”
It comes after Boris Johnson cruelly refused to U-turn and give more help with skyrocketing energy bills hitting Brits next month.
The Prime Minister said "a U turn is the last thing we want" despite prices exploding - and the Ukraine-Russia war risking October bringing a rise of £1,000 a year.
Mr Johnson said he will announce a long-term energy security plan within days to wean the UK off Russian oil - though not gas - by the end of this year.
In a rowdy PMQs, the Tory leader strongly indicated it will include new nuclear power stations. He said: "What we are junking is the failed energy policies that left us without enough nuclear power."
But these take years to build and Keir Starmer said the situation will be a "total mess" within weeks. Hours earlier, food poverty campaigner Jack Monroe warned the cost of living crisis will prove "fatal" for some families.
The PM boasted he was giving most families a £150 council tax discount next month, followed by a £200 bills discount for all families in October which must be paid back over five years.
But energy bills are rising £693 a year in April alone, followed by another rise in October. Inflation is also soaring, National Insurance is rising and income tax and student loan repayment thresholds are being frozen.
When Rishi Sunak announced the energy bills help he hoped there would be a spike in prices that came down by next Spring.
But two Tory sources told the Mirror they fear that is now unlikely due to the ongoing effects of the war.
Despite this, it's understood the Chancellor is not planning to announce major tax or spending changes in his Spring Statement on March 23.
Keir Starmer said the “big gamble behind that policy” of the £350 in bills help "now looks almost certain to fail".
Labour's leader said the Chancellor doesn’t “understand the mess he’s in” and “the wholesale price of oil and gas is now ballooning”, meaning household bills could shoot up by another £1,000 in October.
He added: “It’s a total mess… when is the PM going to force the Chancellor to U-turn?"
