UK households have paid extra £13,961 on bills since 2021 amid soaring inflation, TUC says

Bills and household spending

The TUC report estimates that households have faced nearly £14,000 in extra costs for mortgages, loans, energy and water over five years. It argues the budget should include measures to support people facing rising living expenses.

Consumer spending growth has been the weakest in the G7 since before the pandemic, according to the report. Spending remains below pre-pandemic levels, while household disposable incomes have broadly flatlined since the 2008 financial crisis.

Average rents have risen faster than mortgage costs, suggesting that some mortgage expenses may be passed on to renters. The report calls for action to help young people and lower-income households.

TUC calls for budget action

The union wants a social energy tariff, higher capital gains tax and increased taxes on banks. It says support should shield households from energy price spikes and put more money in workers’ pockets.

TUC general secretary Paul Nowak said working people had borne the effects of successive crises, including austerity, the pandemic and energy shocks. He also linked conflict involving Russia and the United States to rising bills. The article ends with a further TUC appeal for a plan to put working people at the centre of growth and improve living standards.

Budget pressures and proposals

The Treasury is preparing a “tightly focused” budget to reduce the risk of a market backlash from major tax and spending measures. The International Monetary Fund has urged Healey to maintain efforts to cut the deficit as borrowing costs rise.

The Confederation of British Industry has called for a reduction in employer national insurance contributions, saying this could encourage firms to hire younger workers. The call followed meetings between retail industry leaders and Healey.

Separately, the IPPR thinktank proposed raising £16bn, mainly through higher capital gains tax, with a new entrepreneur “super exemption” to soften the change. It said the chancellor’s fiscal headroom may have fallen by £7bn to £15bn since spring because of the effects of the Middle East war on public finances.