Nearly 90% of British households reported an increase in their living expenses last month as they were affected by escalating fuel, food and loan costs.
Putting additional pressure on Rishi Sunak to increase support for low- and middle-income earners, the National Bureau of Statistics said a quarter of those surveyed found it difficult to pay their bills, and 17% turned to loans or loans with credit cards to connect the two ends.
Debt charities and anti-poverty activists say the figures are a shocking reminder that households are facing the biggest drop in their standard of living since the 1950s. Jack Leslie, a senior economist at the Resolution Foundation’s think tank, said the combination of shrinking wage packages and rising costs meant increasing pressure on households.
The figures cover the last two weeks of March, before households felt the impact of the cost of living in April, when household energy ceilings rose by 54% and national social security contributions rose 1.25 percentage points.
The ONS said that while rising bills affected most households across the country, “they are more likely to disproportionately affect those in the most deprived areas.”
More than a third of the five most needy households in England have difficulty or find it very difficult to pay their regular bills.
“This [situation] “It will get worse, with the estimated number of households experiencing fuel stress reaching 5 million this month,” Leslie said.
“In the future, the government must do everything possible to protect those who will be most affected – with support for low-income households being a priority.”
Commenting on ONS data, Helen Morrissey, an analyst at stockbroker Hargreaves Lansdown, said poorer households are likely to “burn through their savings to block in an attempt to cover their daily living expenses, while others choose to borrow more to meet their needs.” to their needs ”.
She added that while many mortgage payers have determined their borrowing costs in recent months, “those who rent will feel very exposed to further increases in the coming months.”
Earlier this month, the real estate website Rightmove said private rents were growing at a record pace and potential tenants were outperforming available rental properties by more than three to one.
Wages have risen in recent months, but have failed to keep pace with rising prices as employers try to keep costs under control. Inflation jumped to 7% last month, its highest level in 30 years in March, driven by rising prices for gas, petrol, food, footwear, furniture and clothing.
On Monday, UK producers said in the latest monthly survey that the price of raw materials and energy had been rising at the fastest pace since 1979. For the time being, consumer prices have risen the fastest since 1979. further acceleration is expected in the next three months.
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The ONS said that among those who pay their energy bills, about four out of 10 (43%) said it was very or less difficult to bear the higher costs in March, even before the last price increase in April.
Illustrating the growing divide between the poorest and richest areas of England as the cost of living crisis worsens, more than half of adults (57%) living in the most deprived areas report difficulties in securing their bills. energy compared to about a third of adults (35%) in the poorest.
Sunak claims to be spending £ 22 billion to ease pressure on households, mainly by cutting fuel tariffs by 5 pence and reducing gas bills by cutting the municipal tax of £ 150, which has already come into force, and a reduction of £ 200 in October, although this is a loan to be repaid over the next four years.
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