The average family is having to pay out an extra £54 on their weekly bills compared with six months ago. A report compiled by comparison website Moneysupermarket.com has revealed that prices of a number of different products and services have all increased recently.
Rises in the cost of petrol, food and energy are causing some of the biggest jumps in household outgoings. But families have also been hit by VAT increasing to 20%, changes in benefit entitlements and the cost of alcohol and cigarettes rising by 5.3% in April. Airlines and travel agents also made the most of the longer than usual holidays in April, increasing their prices by up to 29% in some cases.
While bills are rising, many people’s salaries are being frozen or rising by far less than the rate of inflation, which hit 4.5% in April.
And with interest rates likely to go up in the next few months, families with variable rate mortgages could be hit even harder. “Many families will feel like their finances are approaching breaking point,” warned Kevin Mountford, Moneysupermarket’s Head of Banking.
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