The cost of living crisis will deepen for many households from today as energy bills are set to skyrocket due to an increase in the price cap.
From today, a 54 per cent rise in the price cap – which limits the amount that can be charged per unit of gas and electricity – comes into effect. Local authorities in England will also be increasing Council Tax by up to 3 per cent from today, with many councils introducing the maximum rise.
The cost of buying a pub meal, soft drink or hotel stay could become more expensive from April as VAT levels across the hospitality sector lift back to 20 per cent, while an increase to National Insurance payments will come into force next week.
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Calls are growing for the government to do more to tackle the cost of living squeeze, but ministers have resisted calls to scrap the planned tax hike.
Earlier this year, he announced a support package including a state-funded £200 discount on energy bills was announed, which households will eventually have to repay. However, there are concerns that the measures will not be enough to help.
The Manchester Evening News has created a handy cost of living calculator to predict how much your bills could change due to the changes coming in this month - including the price cap increase, National Insurance, rising rail fares and more.
Use the widget below to see how much your bills could be affected.
It comes as union leaders call for an emergency budget to help working families who are at “breaking point” because of the cost-of-living crisis. The Trades Union Congress (TUC) said pay and benefits will be “swallowed up” by higher bills and inflation.
The union body said measures announced in the Chancellor’s spring statement last week were “woefully inadequate”, warning of the worst living standards crisis in generations The TUC said the Chancellor should return to Parliament to announce fresh economic support, including an increase in the minimum wage to at least £10 an hour, new grants paid for by a windfall tax on energy and oil company profits and an increase in Universal Credit.
The TUC estimated that energy bills will rise at least 10 times faster than wages this year. TUC general secretary Frances O’Grady said: “People shouldn’t be struggling to cover the basics, but millions of families have been pushed to breaking point by spiralling bills and soaring inflation.
“This is a living standards emergency. Rishi Sunak must come back to Parliament and present an emergency budget. We need a proper package of economic support for families.
“Britain faces the worst living standards crisis in generations. We need an emergency budget to bring down energy bills and to boost pay, Universal Credit and pensions.”
