MILLIONS of ordinary families are already struggling to pay their bills.
And that is before the cost of living crisis is set to add an average of £2,417 a year to their outgoings.
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Our postbag, email inbox and Facebook pages have been flooded with messages from hard-working people who have no spare cash.
They have no idea how they will cope with rising bills and are already doing all they can to cut costs.
They have hardly any savings, are deep into overdrafts and have maxed out credit cards.
Understandably they are angry and worried about the prospect of finding an extra £200 a month.
That is the amount the average family faces paying out due to soaring bills this year.
Some are buying blankets because they can no longer afford to put on their heating, others have taken lightbulbs from rooms with more than one fitting.
Tax expert Jim Lee, from our Squeeze Team of finance experts, spoke to families about the tough reality they are facing.
James Kennewell and fiancee Laura Parnham are scared about the coming months when prices are due to rocket as they are set to be £1,392 a year worse off.
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The couple, who have daughter Isla, four, and six-month-old son Oakley, live off the £24,500 a year James earns as a business analyst at a horticulture firm.
James and Laura, both 28, of Huntingdon, Cambs, may have to put off getting married, just to keep up with the bills.
James said: “It is looking like it is going to be a tough year. Our electric is £35 a week and we expect it to shoot up after April.
“We try to pay £55 a week for our weekly shop but it is getting more and more difficult.
“Last week it was £75. Every price increase, just by a few pennies, increases the weekly bill.”
Added to the rise in the cost of living, James will have to pay a £223.95 increase in National Insurance plus a large hike in gas and electricity bills.
He said: “We rent in a very nice village and we were hoping to buy this year. But that’s not going to happen now.
“We’re looking to get married this year but we need the money to do that. Paying out more for taxes and bills isn’t what we want to do.
“Houses where we live are very expensive and luckily our rent is reasonable. But I can see it going up.”
On Thursday Chancellor Rishi Sunak promised a £200 discount on energy bills from October — which families will pay back at £40 a year over five years — and a £150 council tax rebate for band A to D homes in England from April.
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Yet despite the help nurse Mandy Coles will still be £895 worse off a year.
She and her husband Tony, 51, a factory worker, pay £2,000 a year — £165 a month — council tax on their band B home in Tavistock, Devon.
Mandy, 37, says: “A discount of £150 is all well and good but then National Insurance has gone up so it’s all swings and roundabouts.”
The couple, who have a nine-year-old son Taylor, expect their £100-a-month electric bill to rise by five per cent. Their gas costs £120 a month.
Mandy earns £12,000 a year as a part-time NHS nurse and £16,000 as a slimming consultant.
She said: “Food prices have gone up and now we spend around £170-£180 a week on groceries, up around £30.”
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Pensioners Bill and Jennifer Todd, from Stoke-on-Trent, are already struggling with massive increases in their heating bills.
Cost of living rises will leave them £559 a year worse off.
Last year their monthly electricity spend with Eon was £109 — now it is £160.
Bill, 69, a retired security guard and Jennifer, 71, a former pottery worker, expect their electric bill to dramatically rise again after April — even though their joint pensions will stay at just over £20,000 a year.
Their food bills, which used to be £30, are now £70 a week.
Bill said: “It was tough before, but now it’s much harder. They want another £50 per month for the heating. It’s hard to find the money.
“I’ve tried getting in touch with Eon, but that’s mission impossible. They told me to go on the app.
“We’re the lucky ones, at least we have our own house. Loads of pensioners are having to find their rent.
“The £150 council tax reduction is a little help. But for the party that is meant to keep taxes low, we’re being hammered. Hammered at the petrol station and at the shops.
“And the £200 cut in electric is a loan, we’ve got to give it back!
“Food costs are sky high. I go to our local Tesco. It doesn’t matter what it is, just a tin of peas has gone up from last week.”
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COSTS might be spiralling – but The Sun’s Squeeze Team is on hand to help bust your bills.
Here are ten steps to take right now to deal with the cost of living crunch.
CHECK FOR BENEFITS: MILLIONS of people are missing out on benefits they are entitled to because they assume they are not eligible.
Leah Milner, Sun Savers editor, says: “Use an online benefits calculator and check your local council’s Household Support Fund.
“Many local authorities give out free cash or food vouchers.”
CUT COUNCIL TAX: YOU could save thousands of pounds a year if you are in the wrong council tax band and paying too much.
Contact your local council to appeal your valuation if you think you might be in this situation.
Martyn James, from mediation service Resolver, said: “If you are single and living by yourself, you can get a 20 per cent discount. If you are a student, you won’t have to pay.”
RENTING HELP: TENANTS already pay more of their income in rent each month – 31 per cent against 18 per cent – compared to homeowners, says Sarah Coles of financial services company Hargreaves Lansdown.
“With so many prices rising, finding an even bigger chunk of cash for rent will be incredibly difficult”, she adds.
If your landlord pays the bills then you could miss out on the £150 council tax rebate.
The government did announce a £144million fund to help people who miss out. Apply through your local council.
DITCH THE METER: PREPAYMENT meters cost £130 a year MORE than paying by direct debit.
Sarah Coles says: “If you pay the bills yourself, and your landlord has installed a prepayment meter, then as long as you have a good record of paying your bills, you have the right to have it removed and to pay by direct debit.
“You don’t need to ask for permission from your landlord to remove it, and they can’t stop you.”
MANAGE YOUR DEBT: MANY households may be forced into debt as a result of rising living costs, but going into the red should always be a last resort.
Jonathan Chesterman, of debt charity StepChange, said: “The priority should always be to pay your most important bills first, such as housing costs.
“Then try to meet the minimum payment on every debt you have each month, and after that you should pay most towards the debt with the highest interest and charges.”
Organisations such as Citizens’ Advice and StepChange can help if you are struggling with debt.
BE A SAVVY SHOPPER: GROCERY prices have gone up over recent months, adding £20 a month to food shop bills.
Supermarket expert Naomi Willis says there are simple things you can do to reduce costs.
Planning meals, writing a shopping list and sticking to it, and batch cooking will help save you money.
She suggests free and cheap food apps such as Olio and TooGoodToGo.
Look out for yellow-sticker deals in your local supermarket, giving you money off when food is approaching its use-by date.
She adds: “Consider cheaper ways of preparing food at home too.
“Using a slow cooker means you can get away with using cheaper cuts of meat.”
SWITCH SWITCH SWITCH: MOVING energy suppliers used to be a simple way to reduce your bills, but this is no longer the case.
But you can still save on your insurance, mobile and broadband costs, so ensure you shop around for the best deals.
MOVE YOUR MORTGAGE: FIX now before cheap deals disappear.
Nick Morrey, technical director at mortgage broker Coreco, said: “Try to snap up a cheaper fixed-rate deal from a new lender before they disappear completely.
“This will protect you from further increases if rates rise again.”
HAGGLE ON YOUR BILLS: IF you are not happy with the price you are paying, you can always ask for a discount.
Many Virgin Media and Sky customers report they have had success haggling money off their bills.
If you are planning to haggle, do your research first.
Tara Evans, Head of Consumer for The Sun, said: “You can try to haggle directly with your broadband provider to see if you can negotiate money off or a better deal.
“But if this doesn’t work, it is worth running a comparison online to see if making a switch would save you money.”
CLAIM BACK TAX: MAKE sure you are not giving more money to the taxman than you need to.
Check your tax code and claim any relief you are entitled to, says Mitch Young, an accountant at Fusion Consulting Group.
If you have had to work from home since April 2020, you can claim £6 a week tax relief. You can check your entitlement by visiting gov.uk.
Married couples can transfer any unused personal allowance between them, which can save up to £252 in tax for the 2021/2022 financial year.
