FAMILIES will suffer a triple blow next year that will cost every household an extra £1,200.
That will be the result of soaring energy bills, rising inflation and stalling wages.
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Boris Johnson was warned 2022 will be the “year of the squeeze” — with inflation expected to peak at six per cent as wage growth stays flat and the cost of living soars.
The gloomy outlook comes from independent think tank Resolution Foundation. MPs urged the PM to get a grip on the crisis before it is too late, claiming it could cost the Tories even more vital support.
Energy chiefs pleaded for action, warning power bills could stay high for at least another 12 months unless the Government steps in — with more suppliers at risk of collapse.
The energy cap is expected to rise by more than £700 to £2,000 a year in April alongside a National Insurance hike, meaning soaring costs just weeks before voters head to the polls in the local elections.
The rise in bills will fall harder on low-income families as they spend a much bigger share of their pay on energy.
This will rise from eight to 12 per cent — three times as much as richer households.
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Higher-income families will be hit hardest by the tax hike instead, costing them £750 a year.
Torsten Bell, from the Resolution Foundation, added to his “year of the squeeze” prediction by saying: “The overall picture is likely to be one of prices surging and pay packets stagnating.
“So large is this cost-of-living catastrophe that it’s hard to see how the Government avoids stepping in.”
The think tank recommends extending the time suppliers have to pay back their costs, as well as extending and increasing the warm homes discount for the most hard-pressed.
Martin Lewis reveals how households will pay 40% more for steeper energy bills next year
