HOUSEHOLD bills including food, mortgage and energy costs could soar by £6,000 by the end of the year.
Budgets face a battering this winter under a triple whammy of spiralling energy bills, a hike in interest rates and sky-high inflation.
The Bank of England hiked interest rates to 1.75% – which means borrowers could be stung with higher rates to pay back on loans.
It means millions on fixed deals which expire in the next 12 months are sitting on a knife edge, as mortgage rates are already thousands of pounds higher.
While a billing shake-up revealed by Ofgem will see more frequent bill rises, as households face paying just shy of £4,000 for their energy on average this winter.
Finally, the nation was warned inflation could hit an unbelievable 15% by the end of the year.
It means a perfect storm has been created for a miserable winter where many may struggle to make ends meet because of the hikes.
New research by the Centre for Economic and Business Research (CEBR) estimates average outgoings will rise by £4,610 a year between now and December, the Daily Mail reports.
That means annual household bills will be £6,219 more expensive this December compared with the same time last year.
The eye-watering hikes are mainly down to spiralling energy costs, the CEBR said.
And things are only expected to get worse following a billing shake-up from Ofgem that will see bills rise every three months instead of six.
But other costs are rising too – food prices are going through the roof because of inflation.
Latest government figures show food prices and non-alcoholic drinks jumped 9.8% in the year to June – the highest rate seen since March 2009.
While drivers are paying a fortune at the pump as fuel prices soar – although retailers have been slammed for not lowering prices quickly enough.
How can I protect my finances?
If you’re struggling to make ends meet, our Squeeze Team is a panel of experts full of tips and advice to help you cut costs.
Shopping around for insurance, buying own-brand where possible, and using cashback sites are just some of their recent recommendations.
See what help is available that you may be eligible for.
Ex-Chancellor Rishi Sunak announced an emergency package of measures recently including £400 energy bill rebate for every household, an extra £650 for millions on benefits, and a £300 winter payment for older people.
You can also apply for help through your local council’s Household Support Fund.
Some are giving out free cash or supermarket vouchers, while others offer help with housing costs or energy bills – but help on offer varies depending on where you live.
If you’re struggling with soaring energy bills, a number of energy firms have hardship funds which offer grants of up to £750 for those struggling with their bills.
Low income families with young children could be entitled to Healthy start vouchers to help you cover the cost of fresh food and drink for your kids – they’re worth £221 a year per child.
And use a benefits calculator to see you’re entitled to help – there’s an estimated £13billion in unclaimed benefits you may be missing out on.
Source: The Sun