HOUSEHOLD finances are set to take a £1,000 hit because of rising costs of food, bills and fuel.
Brits are set to be worse off as rising inflation means “real incomes” will fall by around 2%.
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When prices rise it mean that more of your money goes on bills and essentials and so the money you earn is worth less than it was.
The calculations by the Resolution Foundation show that the average household will be £1,000 worse off by the end of next year.
A report by the think tank said: “Together with a £13billion raid on household incomes from increases in National Insurance Contributions, and sharp cuts to Universal Credit, there will be major headwinds to families’ spending power in the coming months.”
Prices are rising due to supply chain issues globally and an increase to wholesale energy costs has sent household energy bills soaring.
National Insurance will increase from April next year, adding up to over £800 extra in tax for the highest earners.
Meanwhile those on the lowest incomes claiming Universal Credit are over £1,000 a year worse off after the loss of the £20-a-week benefit uplift.
An interest rate rise, which could be on the horizon before Christmas, could also lead to higher borrowing costs for millions of Brits.
The cost of living crunch leaves many Brits looking to tighten their belt.
But there’s support you can get if you’re struggling – here we round up what help you could get and how to apply.
Energy bills – hundreds of pounds
Energy bills are soaring and could be even higher next year, leaving many worried about paying the extra.
There are several schemes available, either through your energy supplier or via government schemes.
There’s £140 available to reduce your bill through the warm home discount scheme for anyone on a low income.
It’s on a first come, first served basis, so you need to apply quickly or miss out.
You can find out how to apply and who’s eligible in our guide and even if your supplier has gone bust there’s still time to get an application in to your new one.
Low income households can get £25 a week to help with energy bills during the winter thanks to the cold weather payment scheme too.
You’ll get a payment if the average temperature in your area is zero degrees celsius or below over the space of a week.
You can check out how to get it here.
Eligible pensioners receive an annual one-off winter fuel payments from the government of between £100 and £300.
You could also get help directly from your supplier as many offer grants to struggling customers.
British Gas Energy Trust, for example, runs a scheme where anyone can apply for a grant, and you don’t even have to be a customer.
Other firms that offer grants just to their customers include:
Households can also save money by making some simple changes around the home.
Check benefit entitlements – £5,320
Millions of Brits are not claiming money they are entitled to – and it adds up to £5,320, on average.
It ranges from Child Benefit, with half a million parents missing out, to Pension Credit for the elderly, which almost one million have not claimed.
All in all there’s £15billion in unclaimed benefits, charity Turn2Us calculates.
You can use a benefits calculator to see how much you could claim – and if you’ve been missing out you might even be able to get payments backdated.
Council tax discount – thousands of pounds
Council tax bills can be among the biggest household expenses – and it’s a priority bill that you don’t want to fall behind on.
Anyone struggling should seek help as soon as possible and there are discounts and reductions you could be entitled to.
Bills are discounted for carers, apprentices, students and those living alone.
Reductions are also available for those on low-incomes, people claiming certain benefits, those caring for others as well as other circumstances.
The amount your bill is reduced by can range from 25% off to 100% which would mean you pay nothing at all for this bill.
The exact amount can depend on where you live, your income, who lives with you, among other things.
Contact your local council to check what support you can claim and apply.
Household Support Fund – £500m pot
A fresh pot of cash is available for Brits who are struggling.
The government is dishing out £500m to local authorities to hand out as needed – you can check how much is available near you here.
The pot of cash is distributed according to each areas size, population and needs, and is then dished out to those who need it locally.
The pot of cash is distributed according to each areas size, population and needs, and is then dished out to those who need it locally.
If information about the scheme is not yet listed on your local authority’s website, you can call or email for more information.
Welfare assistance scheme – up to £1,000
Some councils also offer support through the welfare support fund, to help cover the costs of essentials, from buying new furniture to food vouchers.
An investigation by The Sun found that hard-up Brits can apply for help worth up to £1,000.
But exactly how much you get and what for will depend on where you live – and not all councils have this help.
Grants are given on a case-by-case basis and there will be a different application process depending on where in the country you live.
You can find out who your local council is by visiting the gov.uk website and get in touch with them about whether help is available in your area.
Water bills – £500
Water companies offer a range of support options to struggling households, including a cap on bills for large families and those with certain medical conditions through the WaterSure scheme.
To qualify for the scheme you need to already have a water meter installed, and prove you need to use a lot of water.
Bills are capped at the average amount for your supplier, so the amount you could save will vary.
The Consumer Council for Water estimates that bills are reduced by £270 on average through the scheme.
Yorkshire Water says its low income customers can save £534 per year on average using WaterSure.
Social tariffs are also an option for those on Universal Credit.
You can find out more about who is eligible for both schemes and how to apply in out guide.
Energy price cap rise could leave more than five million households in the cold
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