Cost of living crisis 2022: How much your bills could soar by compared to last year

Cost of living crisis 'will hit UK hard' says Keir Starmer

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Unfortunately for UK households, 2022 is shaping up to be an expensive year as the cost of living crisis spirals out of control, with no more Government financial help for the most vulnerable households in Britain. Boris Johnson is coming under significant pressure to bring in measures to stop the skyrocketing cost of living, but the Prime Minister is refusing to budge, having said there are no plans for additional funding for hard-up Brits.

He said cutting or scrapping VAT on energy bills will “end up also cutting fuel bills for a lot of people who don’t need the support in quite the direct way that need to give it. We need to help the people in fuel poverty”.

Despite this, there are no further funds planned to help those in fuel poverty.

The Resolution Foundation think-tank has warned the combination of higher energy prices, rising inflation, and tax increases could have a “catastrophic” impact on the lowest income households across the UK.

So what are the biggest costs coming for Brits this year?

READ MORE: Don’t freeze pensioners out with cruel fuel bills – EXPRESS COMMENT

Tax hikes

In April 2022, a new year will begin, and with it an increased rate of National Insurance payments.

To pay for health and social care reforms, the Government has added 1.25 percent to employees contributions.

The increase is expected to add an additional £12 billion a year for the NHS backlog, caused by the pandemic, and for the social care system.

In the current system, people pay 12 percent on earnings between £9,568 and £50,270, and 2 percent on any income above £50,270.

For example, those earning £30,000 a year now paying £2,452 will pay £255 extra per year – £2707 in total.

Inflation

Inflation is predicted to soar as high as five to six percent in 2022, bringing price hikes to everyday goods.

Supply chain woes have caused the rate to spike as consumers started buying more following the early 2021 lockdown.

Inflation soared to 5.1 percent in November, up from 4.2 percent in October, 3.1 percent in September and 3.2 percent in August.

This means good are currently 5.1 percent higher now than they were at the same time last year.

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Energy bills

An issue that affects every householder in the UK, energy bills are spiralling to unaffordable rates in one of the direst elements of the cost of living crisis.

Worldwide shortages of oil and gas have hiked up prices for billpayers and caused more than 20 UK suppliers to go bust at the tail end of 2021, with the misery looking unlikely to ease anytime soon.

The price cap, which will be announced on February, is likely to rise significantly, with an increase of up to £600 predicted by some experts.

Energy sector specialist Cornwall Insights has said that energy bills could rise from an average of £1,277 per year to £1,865.

Travel

Petrol costs continue to go through the roof, once again thanks to the worldwide shortage of oil.

The RAC claimed retailers haven’t dropped their fuel prices, despite supply chain issues becoming more diluted.

According to the latest Government statistics for the first week of January, the average pump price was 145.04p for petrol and 148.85 per litre for diesel.

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