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Many households are facing a significant increase in living expenses this week, with energy, water, and council tax bills poised to rise, intensifying concerns about an ongoing cost of living crisis.
The energy regulator Ofgem has announced that the energy price cap will increase by £111 starting in April, bringing the annual cost for a typical dual-fuel household in Great Britain to £1,849.
In addition, council tax rates—varying by region—are permitted to rise up to 4.99% per year. This year, however, six local authorities in England have been granted approvals to increase their rates by as much as 9.99%. According to the Resolution Foundation think tank, lower-income households will be disproportionately impacted by these surges in costs.
These escalating household expenses come shortly after the Chancellor, Rachel Reeves, presented a new series of welfare cuts. The Department for Work and Pensions warns that these cuts to health and disability benefits could lead an additional 250,000 individuals, including 50,000 children, into relative poverty after housing costs by the financial year 2029-30.
Many individuals have reached out to share the implications that rising living costs will have on their financial situations.
‘Everything is going up faster than my income’
Elisabeth, a 71-year-old retiree renting in Marlborough, is grappling with increases to her Thames Water bill, electricity costs, and council tax while living on a predominantly fixed income.
“I’ll need to stretch my pension even further to meet my expenses,” she explains. “I’ll have to limit my heating and find ways to cut my food budget.”
Elisabeth notes that she is already using electric storage heaters and minimizing water usage. “I don’t shower as frequently as I used to; I do what I call a ‘bird bath’—just washing the essentials in the sink,” she mentions, along with other adjustments to reduce spending on non-essentials.
“I stopped sending birthday cards, which I used to do for my grandchildren. Last year, cards in charity shops were £1, and this year they’re £1.40—that’s a 40% increase,” she adds.
She expresses her frustration at voting Labour, feeling that the party has shifted its values closer to those of the Conservatives, and calls on the government to address the widening inequality that she believes is “undermining the social fabric.”
Elisabeth, who became financially vulnerable following a divorce five years ago, reflects on her diminishing savings: “Life is challenging. I never imagined I’d find myself in such financial instability at this age.”
‘We already live close to the bone’
For single parent Anthony Rowles, 46, life in Hove is becoming increasingly difficult with two sons aged 18 and 16.
As his eldest son prepares to leave full-time education, Rowles anticipates new expenses, including a reduction in his universal credit (he works about 25 hours a week as a chef) and the loss of the single occupancy discount on council tax.
Additionally, the expected rises in water, gas, and electricity fees, as well as council tax, add further strain. “We are already living on the edge,” he states. “I don’t smoke, drink, or drive, and I rarely buy new clothes, yet I’m often broke by the end of the month.”
Rowles is critical of Labour’s direction, stating it resembles more of the same policies from the past 15 years. He believes the issue lies not with high welfare costs, but with low wages.
While his employer is understanding, Rowles feels that the compensation for his shifts is insufficient.
He mentions that increasing his hours to 40 a week would reduce his universal credit benefits but only yield an additional £20, not accounting for necessary expenses like travel and childcare.
“I recognize the need for fiscal restraint after the economic impact of Covid,” he adds, “but every penny I receive in universal credit goes back into the economy.”
‘Do Labour not understand how mental health works?’
Daniel, a 34-year-old resident of Cornwall, receives his income from universal credit and personal independence payments (PIP) and is currently unable to work due to complex post-traumatic stress disorder.
His council tax is set to rise by 5%, which is already causing significant stress as he tries to manage rent, bills, living costs, and expenses related to seeing a private psychologist to aid in his recovery.
“I prioritize paying my bills first and try to set aside enough for food,” he reveals, noting that this struggle significantly affects his mental and physical health.
“I often have to choose between junk food and healthy options, and unfortunately, the cheaper choices usually win out.” He points to two microwavable cheeseburgers that cost £2 as a meal solution, though he acknowledges its negative health implications.
The government’s proposed reforms to the welfare system pose a threat, with estimates suggesting that up to 1.2 million people with disabilities could experience severe financial cuts. Daniel hopes to return to work, but fears these changes could target those unable to work due to mental health challenges.
“Do they not understand how mental health works?” he asks. “Some days are manageable, but on many days, I can feel overwhelmed.”
‘You can almost feel the poverty in the air’
Jan and her partner purchased their home in Birkenhead in 2006 during a time of optimism and economic growth, coinciding with Liverpool’s designation as the European Capital of Culture in 2008.
Today, she feels the environment has drastically deteriorated. “Birkenhead looks like it’s in serious decline. You can almost feel the poverty in the air as you walk through the area, which is disheartening,” she reflects.
Jan’s council tax will rise by 5%, totaling £3,440.18. She argues that the tax is unjust as it is based on outdated valuations from 1991. “It has become a poll tax, dissociated from property value,” she states, having also attempted to contest her council tax band to lower her bill, but she insists the entire system is in need of reform.
As she prepares for additional hikes in expenses, Jan concludes, “It just feels unending.”
Source
www.theguardian.com