Cost of Living Crisis - What You Pay and What You Get

This winter you are facing a catastrophic rise in energy prices. It's like you never had to live.

Last winter, the average annual bill was just under £ 1,300. By January 2023 it could be over £ 4,200.

Still fresh from Slovenia's luxury honeymoonBoris Johnsonexcluded COBRA rolling meetings, emergency budgets, or parliamentary recalls.

That means paralysis next month.

Scottish Prime Minister Nicola Sturgeonhas asked the Prime Minister to advance the September Living Expenses Conference this week.

And Liberal Democratic Party leader Sir Eddavyshould completely cancel the October price cap hike, cost £ 36 billion and be paid by a storm tax on the profits of oil and gas companies.

The Joseph Rowntree Foundation's chief analyst, Peter Rowntree, said the prediction was "terrifying," adding: Ignore the imminent disaster.

Money-saving expertMartin Lewissaid the news was "tragic," adding: The zombie government needs to wake up earlier than September 5th.

So what exactly is happening with the payment of living expenses, what the next prime minister will offer, and what do you have to pay?

Here's what we know so far:

How much will it cost to live this winter?

Summer and Autumn: Most claimants are £ 650.UKUniversal Credit, Income-related JSA, Income-related ESA, Income Support and Pension Credit claimants will receive two payments, first £ 326 and then £ 324. If you are taking advantage of any of these benefits other than tax credits, your first payment should arrive at your bank account between July 14th and 31st, and your second payment should be paid in the fall. Tax credit payments take a long time to arrive, first "from autumn" and second by the end of the year.

By September: £ 150 for UK with disabilities:£ 150 will be paid to 6 million bank accounts for UK disability allowances.

October-March: £ 400 for everyone Energy rate discount.All households will receive £ 400 from their electricity bill starting in October as a non-repayable grant. No £ 400 is credited to your account at one time. It spreads over a 6-month period from October to March.

November-December: Pay £ 300 to most pensioners:One-time "PensionersLiving ExpensesPay £ 300" , November or December £ 100-300 Winter Fuel Payment. If you are 66 years of age or older by September 19, you are eligible for WFP.

What can help Rishi Sunak and Liz Truss take the lead?

Both candidates maintain the above payments. But now that the bill is higher than expected, there is an urgent need to do more.

PM favoritesLiz Trusssuggests that they will hold an urgent budget when they enter No10, but will not want to pay any more living expenses. Instead of giving

so-called "distributions," she wants to get rid of the green tax on theenergy billand overturn the April national insurance hike.

Still, these measures help minimum wage workers by only a few hundred pounds. This is just a small part of the imminent rise in the bill.

The reduction in national insurance saves minimum wage workers by just under £ 60 a year. The green tax accounts for about £ 153 of the annual energy bill.

RishiSunakplans also make up for the difference May not be.

He promised to impose VAT on energy tariffs and make direct payments prioritizing "pension and low-income earners", butis worth "hundreds of pounds" It states that there is likely to be.

Snack also promised to fund his plans by making efficiency savings (also known as cuts) across Whitehall.

How much will the energy cost go up in comparison?

Since April, the average home electricity bill has been capped at £ 1,971 per year. This has already risen by nearly £ 700 since last winter.

Currently, it is expected to surge on October 1st and again on January 1st. Another change is expected on April 1st and may be even higher.

According to an analysis by prominent company Cornwall Insight, average energy price caps could reach £ 3,582 in October, £ 4,266 in January 2023, and £ 4,427 in April 2023. ..

Then it will drop slightly, but will remain above £ 3,700 until the end of 2023. This means that electricity and gas bills this winter will be more than three times higher than last winter.

If you are still trading fixed rates before the crisis, you are in luck. Not so long. Many transactions over the last two years quickly hit standard variable rates and can be at the mercy of caps.

What about all the other invoices?

Significant increases in energy prices do not take into account other price increases-and they are massive. It's not possible to predict exactly what will happen this winter, but trends are known.

Fuel prices are skyrocketing, and despite 5p tariff cuts, the cost of gasoline in pumps has skyrocketed from £ 1.35 to £ 1.88 in a year. increase.

This had a knock-on effect on food and beverage prices, which rose 9.8% over the year to June 2022. Milk, cheese and eggs are vegetables, meat and cooked foods. UkraineWar is also responsible.

During summer vacation, UK restaurants and accommodations are hit by 8.6% annual price increases, while clothing and shoes are up 6.1%.

Inflation (currently 9.4%) is 13% by the end of the year Is expected to peak at.

The Bank of England raised interest rates to 1.75% to manage it, which added hundreds of pounds a month to some people's mortgages, which in turn rented. Push up. Interest rates may rise further in the future.

The Council Tax was raised in April, the £ 20 Universal Credit was raised last year, and 20% VAT returned to pubs and restaurants in April after Covid.

Universal Credit-based housing payments were frozen in April, as was the income tax base. It will be far below inflation.

What is your shortage?

It's hard to say because it depends on a lot of things, but most people agree that the poorest people can be hit far harder.

This is because poor British people spend a much higher percentage of their income on energy bills than the richest British people who have more disposable cash.

Government support is often charged at around £ 1,200, but the Joseph Rowntree Foundation today announced that family costs will rise by around £ 2,550.

This includes a £ 1,550 increase in energy prices and a £ 1,000 increase in “non-energy costs”.

According to the JRF, Rishi Sunak's plan to impose VAT on energy prices will secure the average consumer £ 154 a year. And Liz Truss' plan to cut national insurance will put £ 6 for every £ 7 in the wealthiest half of the British pocket.

According to another report by Professor Donald Hirsch of Loughborough University, the loss of an unemployed couple with two children is about £ 1,300, or £ 1,600 with worse household inflation. Become. account. This is based on a £ 800 increase in the energy price cap, which will increase as the price cap rises further.

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