2021 is coming to a close and already is being reported that 2022 is going to be the “year of the squeeze” financial for households. As if 2021 was not bad enough, between lock downs, furloughs, supply chain issues, job losses, shops and stores closing, you have to wonder, how could it get any worse!?
Sadly it may get worse.
We have the variants of the virus causing a resurgence in the number of cases being reported, and as it has been mentioned before, we some how are going to need to pay for all this, all the borrowing the government has done to fund the issues we faced and are facing due to the virus.
If we are to believe what is being reported, in 2022, households could be as much as £1,200 worse financially due to an increase in costs.
This is in part due to a 6% increase in inflation, which is the largest increase in 30 years.
The increased household expenses are made up of various factors:
- National Insurance contributions being increased.
- Utilities such as gas and electric going up as major suppliers have increased their rates. This increase has caused many household suppliers to go bust.
- Petrol and diesel prices have increased.
- Food prices have and are rising.
- A reduction of some benefits, such as Universal Credit.
- Increased Council Tax.
- Wages will be flattened, with no increase.
When you couple all these factors together, they really add-up! To an estimated £1,200 annually.