CASH-STRAPPED Brits have forked out up to a quarter more than usual on energy bills and fuel over the past fortnight, as the cost of living crisis starts to bite.
Research by Lloyds Bank said September 24 saw the highest spend on fuel ever recorded as there was panic at the pumps – drivers spent 125% more than usual.
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Research by Lloyds Bank said September 24 saw the highest spend on fuel ever recorded as there was panic at the pumps – drivers spent 125% more than usual.
The cost of living is soaring for millions of households.
In recent weeks, families have had to endure soaring energy prices, food price increases, and seen petrol hit an eight-year high.
And it comes at the same time that millions of families have been hit by the end of the Universal Credit uplift and the end of the furlough scheme.
Lloyds said households spent 24% more than usual on energy over the past two weeks, and 20% more on fuel.
Spending on clothes has surged 22%, while department stores took in 14% more, and electrical stores were 5% up.
Those returning to the office, meanwhile, are forking out 10% more on transport costs.
The Centre for Economics and Business Research (CEBR) has estimated that families could be hit to the tune of £1,800 by rising prices.
Inflation has reached 4%, which means rising prices across the board and that your money will not go as far.
If a loaf of bread is £1 this year and inflation is at 4%, the same loaf will cost £1.04 next year.
That might not sound like a big deal, but if the same thing happens to everything in your weekly supermarket shop and all of your household bills, it can have a major impact.
At the same time, inflation erodes away the value of any savings you have.
So if you have £100 in the bank this year and inflation is 4%, the real spending power of that money is reduced to £96 next year.
How to keep household bills down?
But there are still things you can do to keep your costs down. For example, following tips to make your tank of fuel go further.
While households are currently being advised not to switch to a new energy provider while prices are sky high, you should certainly consider shopping around on other bills and insurance.
Millions of households face paying more for energy bills, but you can still save hundreds of pounds a year.
Don’t be afraid to haggle with your broadband or TV providers to save hundreds.
Martin Lewis recently revealed how you could save hundreds of pounds by auditing your regular payments.
If you claim Universal Credit, you could save £270 on average through the WaterSure scheme.
We’ve also rounded up eight ways you can earn some extra cash before Christmas.
And here’s how to budget for holiday treats without feeling the pinch.
Philip Robinson of Lloyds Bank said: “Household energy spend continues to increase – up 13% in the past week alone, driven by rising prices and colder months.
“With this is mind, now is a very good time to sit down and reflect on your personal finances ahead of Christmas.”
This Morning’s Martin Lewis issues chilling warning over fuel crisis saying some will be forced to ‘choose between heating and eating’
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