UK households have spent an additional £13,961 on average on mortgages, loans, energy and water bills over the past five years, according to a report from the Trades Union Congress (TUC). The union body is urging Chancellor John Healey to tackle rising living costs in the Budget, due in less than two weeks.
The report notes the UK has seen the weakest growth in consumer spending in the G7 since before the pandemic. It calls for new measures to support Britons as the cost of living crisis weighs on the economy.
Soaring inflation since 2021
Official figures from the TUC show households spent an extra £2,792 a year on average since 2021, as a result of soaring inflation sparked by the exit from the Covid pandemic and wars in Ukraine and the Middle East.
Paul Nowak, the TUC general secretary, said: “From austerity to the pandemic to energy shocks and Trumpflation, working people have borne the brunt of crisis after crisis. When the crackpots in the White House or the Kremlin launch an illegal war, everyone pays the price in their bills.”
Healey's Budget promises
Healey vowed to use his October 28 Budget to give households “breathing space” when speaking at Labour's conference in Liverpool. He also warned that the government had limited resources to soften the global economic shock impacting the nation.
The chancellor faces immense pressure ahead of winter as energy bills are predicted to shoot up to around £2,000 a year from January.
TUC calls for action
The TUC said Healey should launch a social energy tariff and take action to help poorer households and young people with rising living costs. It also called for a rise in capital gains tax and higher taxes on banks, reports the Guardian.
Mr Nowak said: “Eye-watering bill rises have hammered household budgets, squeezing consumer spending. That’s being felt on high streets up and down the country, holding our economy back.
“The chancellor needs a serious plan to put working people at the heart of growth, raising living standards so Britain can afford to spend. That means shielding households from punishing energy spikes and putting more money in workers’ pockets.”
