One in five Britons say they cannot afford a summer holiday this year as the cost of living – fuelled by the conflict in the Middle East – continues to rise, a new poll has found. Nearly a third (30 per cent) of Brits have postponed holidays or travel this year, according to polling by YouGov commissioned by fintech company SumUp.
The results reveal growing concern about finances as continued tension in the Middle East affects global economies. Oil prices have soared amid fighting between Iran and the US, with a knock-on effect on energy, food and jet fuel costs. The disruption to oil flow in the Strait of Hormuz – through which around 20 per cent of the world's gas and oil is shipped – is a key source of uncertainty.
Airlines have begun increasing flight cancellations for May as jet fuel prices and fears of shortages rise. Data from analytics firm Cirium shows 296 departures from UK airports were cancelled this month, a figure increasing daily. EU energy commissioner Dan Jorgensen warned that many people's holidays will be affected due to very expensive tickets or cancellations.
Despite hopes that a peace deal between the US and Iran could ease the crisis, energy costs are set to hit a two-year high in the UK from July. Ofgem's new energy price cap increased by 13 per cent to £1,862, reflecting the maximum annual bill for an average household.
Conor O'Shea of the Cost of Living Action coalition said: 'The cost of essentials is eating further into household budgets, leaving little or no money for anything else. This crisis is sucking the joy out of life for millions of families.' The government has announced a five-point plan including a £117 reduction to the energy price cap and measures such as cutting VAT to 5 per cent on summer attractions and free bus rides for under-16s in England during August.
