You are here: Home - Household Bills - News -

Households battle cost of living as gas prices soar 129% in a year

Households may be facing their toughest Christmas yet with annual gas prices up 129%, electricity up 65.5%  and rents rising by 4%, according to the Office for National Statistics.
  • 63% of households are using less gas and electricity because of the cost-of-living crisis
  • Over half of bill payers say they are worried about keeping warm at home this winter
  • Fuel price inflation falls for the fifth month in a row
  • Two thirds of shoppers are spending less on non-essentials
  • 94% of adults say the rise in the price of food shopping has driven up their cost of living
  • Highest annual percentage change in rents since January 2016
  • Regular pay fell by 2.7% in the quarter, adjusted for inflation.

Energy costs continue to rocket

Annual inflation may have eased slightly in November falling back from 11.1% to 10.7% but that’s little comfort to households watching the relentless rise of their energy bills.

Despite the introduction of the government’s Energy Price Guarantee, put in place by the government to shield bill payers from the full force of energy price rises, electricity and gas inflation were still some of the main drivers of inflation in November.

The UK has suffered some of the highest rates of energy price inflation in the G7, with gas and electricity prices in the 12 months to November up by 129% and 65.5% respectively.

Bill payers are struggling to cope with around half admitting they found it very or somewhat difficult to afford energy costs and two thirds saying they had cut back on their usage.

There is some slight relief at the petrol pumps as fuel price inflation fell from 22% in October to 17% in November. Although prices are still rising, the pace of inflation is a far cry from the 44% peak seen in July.

Non-essential spending cut

More than 90% of adults said their cost of living has risen compared to this time last year.

The main reasons given were rises in the price of food shopping (94%), gas or electricity bills (76%) and fuel (53%).

To ease the burden, 66% of shoppers have cut back on non-essential spending. This is reflected in the continued fall in sales in retail stores.

Despite cutting back, one in six adults said they were somewhat worried they would run out of food before they could afford to buy more.

Rents rise to highest level since 2016

Private tenants faced a 4% annual rent rise in November, marking the highest annual percentage change since January 2016.

Those living in the East Midlands fared the worst with a 5.1% annual rise. Rents in London and the north east rose slowest at 3.5%.

Average UK house prices increased by 12.6% in the year to October 2022, up from 9.9% in September 2022. The strength of the October increase is partly due to the sharp fall in house prices in October 2021 following changes to stamp duty.

Pay falls in real terms

Average pay in both the private and public sectors rose in the three months to October, when not adjusted for inflation. In the public sector salaries rose by 2.7%. Meanwhile their private sector counterparts received an increase of 6.9%, excluding bonuses.

But when adjusted for inflation over the year – regular pay fell by 2.7% in the quarter. This is among the largest falls since records began in 2001.

The rate of redundancy rose in the three months to October but remains low.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Everything you wanted to know about ISAs…but were afraid to ask

The new tax year is less than a fortnight away and for ISA savers or investors, it’s hugely important. If yo...

Your right to a refund if travel is affected by train strikes

There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week