Megan Geall
Britons are facing a shock this April 1st as household gas and electricity prices soar and the general cost of living increases.
This is no April Fools joke: it is predicted that the increases in household living costs could plunge an extra 1.3 million people into absolute poverty in 2023, including 500,000 children. The decisions made by the UK Government come into effect this Friday 1st April. They include multiple increases in everyday living costs that will have the most impact on the lowest-income households.
What changes are coming into force?
Energy bills are going up by 54%, an increase of £693 a year on average. The price cap has been raised by the energy regulator to £1971 a year for customers on direct debit with average usage. Out of fear of the oncoming “bleak Friday” price hikes, many energy suppliers’ websites crashed on Thursday as consumers rushed to submit meter readings and secure cheaper deals on their energy rates before the end of the day.
Some of the main changes include council tax increases, which are up 3.5%; water bills, which are increasing by 2%; as well as telephone and broadband packages, which are up by about £42 a year. The current pandemic still causes many people to work from home. Therefore, many consumers are more reliant on broadband packages on a daily basis. Without paying for a good broadband connection, how does the Government expect workers to complete their daily roles?
Government support will do little to help Britain’s poorest
While the government has offered support to households including a £200 energy bills discount and a £150 council tax rebate, is this really enough to relieve some of the pressure? The answer is simply- no. After the Chancellor of the Exchequer, Rishi Sunak, faced outrage, further support was offered in his Spring Budget by introducing a 5p cut to fuel duty to combat the noticeably rising petrol prices, but this still isn’t enough to ease the pressure on Britain’s households.
Panic around the country has been evident this week with the Citizens Advice Bureau reporting, “around five million people would be unable to pay their energy bills from April, even accounting for the support the Government has already announced.”
“The rising cost of living was previously unthinkable and is now catastrophic”
Founder of MoneySavingExpert.com, Martin Lewis, is known for giving advice and saving money for millions of Britain’s poorest households with his expert saving techniques. However, Lewis has bluntly stated that the rise in the cost of living was “previously unthinkable and is now catastrophic” with the Government’s decision leaving many facing “a choice between starving and freezing”.
Britain’s future is “Bleak”
With household prices and the general cost of living rising, many will be left worrying about the financial pressures of the future. Although the Government’s National Living Wage is increasing by 7%, about 59p an hour, I really think this will do little to ease the pressure on the lowest income households in Britain. With experts predicting another hike in prices come October, April’s fools was dubbed as “bleak Friday.” The future for many of Britain’s families is, indeed, very bleak.
Featured image courtesy of Annie Spratt on Unsplash. Image license can be found here. No changes have been made to this image.
Megan Geall
Megan is a 23-year-old recent English and American Literature graduate and aspiring journalist. Her interests include food, fitness, lifestyle writing and dance!