A number of key changes to taxes and increases to household bills could seriously hit your wallet this year. A cost of living crisis is predicted to hit many Britons in 2022. Here are the four key dates you will need to bear in mind as experts explain how they will impact your finances.
The Government seems to be doing little to solve the growing cost of living crisis.
Increases to national insurance, interest rates and Ofgem’s energy price cap later this year will see the finances of many Britons squeezed.
Experts warn that the measly rise to the state pension won’t help struggling pensioners much either.
Here are the key dates to watch out for this year.
Higher interest rates make borrowing more expensive, while this may boost your savings it could mean higher mortgage repayments for millions of struggling households.
Energy price cap
Ofgem is the regulatory body that caps how much energy companies can charge their customers.
On February 4, Ofgem will announce its new price cap. This is expected to be far higher than its previous cap, which could see households energy bills jump by up to 30 percent.
Chandni Bhogal, business development manager for Lotus Sanctuary, a company this helps combat homelessness, told Express.co.uk that the price cap will impact the most vulnerable and low-income households.
The rise of 1.25 percent will seriously cut into workers pay packets.
Rosemary Macdonald, CEO of UK Community Foundations, a group that helps millions of vulnerable households, told Express.co.uk: “National Insurance will affect everyone in work, especially those who are on zero-hours contracts.
“Lower-income families will be hit by additional contributions to National Insurance but their pay is not going to increase.
“The just about managing will be hit by NI. So those holding down two or three jobs, all low paid, who haven’t got anything in the way of savings, who are keeping their heads above water but only just.
“You only need one thing to fall out of wack and then everything gets difficult.”
State pension increase
Some welcome news is that the state pension will rise from April 6. But the bad news is that this long-overdue increase will rise by just 3.1 percent.
This is considerably lower than it would have if the triple lock hadn’t been scrapped by the Government.
Ms Macdonald said that the state pension increase won’t scratch the surface of the other bills that are set to rise this year.
She also urged struggling Brits to “make sure they are getting all the benefits they are entitled to.”
She added: “It makes a massive difference for some people.