How Sunak’s cost of living support will affect UK households
Households are facing the biggest fall in disposable income for three decades, according to the Bank of England, with rising energy prices and other consumer inflation hitting incomes. The government has responded to the cost of living crisis with the announcement of a package of measures. Here we look at the impact on a range of different people.
This family uses 25% more gas and electricity than the average household and their annual dual-fuel bill will rise from £1,600 a year currently to a whopping £2,464 a year in April – an increase of £864.
Like everyone else they will receive the chancellor’s £200 payment in October, and their property qualifies them for the £150 council tax rebate in April. However, their £200,000 tracker mortgage will also rise £20 a month or £240 a year on 1 March after the interest rate rise.
At the start of April the net wages of both parents will fall by £255 a year as a result of the higher national insurance charge.
For this pensioner, medical conditions mean she keeps the heating on in at least two rooms from October to April, so she uses 15% more gas and electricity than the average household. She can expect to pay an extra £800 a year to her energy supplier after April. That will be mitigated by the £200 energy rebate loan.
Because she lives in a large band E home, she is not entitled to the £150 council tax rebate. Her low income may entitle her to a discretionary payment from the local authority, and she may already qualify for reduced council tax because of benefits she receives. The warm home discount she gets because she is on pension credit payment is worth £140 a year, and will be £150 next year. She pays no national insurance and her mortgage is long paid off.
This family rent a
Read more on theguardian.com
