Household bill hikes could spell a new cost-of-living crisis experts warn

Experts are warning that the latest hikes to household bills could be the start of a new cost-of-living crisis across Staffordshire and Cheshire.

The cost of water, energy, a TV licence, broadband and council tax all increased this week.

"Government need to look very very closely to make sure we're not pushing people into desperation." says Kevin Mountford, the Stoke-born founder of Raisin UK.

"My main fear is we've not yet fully felt the impact on the higher national insurance rates that our businesses need to absorb.

"It's either going to be a fact they'll have to curtail salary increases, reduce the hiring of new staff - or pass on the cost to consumers. So one way or another it will hit businesses and it'll hit us as consumers."

Angela Rayner insisted a rise to the national living wage coming into effect on Tuesday will give workers "more money in their pockets" as households brace for April's council tax and energy bill hikes.

The annual bill for a household using a typical amount of gas and electricity is going up to £1,849 per year, an increase of £111, as Ofgem's latest energy price cap takes effect.

Water bills for households are also going up in England and Wales by around £10 more per month.

Meanwhile, most councils in England will hike tax by the maximum amount allowed, which is 4.99%, and on April 6 the rate of employer NICs will increase from 13.8% to 15%.

Kevin continued: "The range of increases across TV, broadband, energy and water - they're all very difficult for people to avoid, and it's okay for the government to say the minimum wage is going up, and currently salary increases are outweighing inflation - but it'll take people back to a cost-of-living prices."

Meanwhile, charities like Staffordshire's Citizens Advice says higher bills means they're bracing themselves for more people falling into debt.

"People are finding themselves in crisis and really are at breaking point at the minute." said Katie Underwood, Head of Money Advice across Staffordshire and Stoke-on-Trent.

"They have no option but to turn to debt, or sadly loan sharks. That's something we're seeing and I've only seen increase."

Katie added: "People really are going to have to tighten their belts given the cost-of-living crisis and COVID, and the aftermath of that and we have a lot of people who got into debt during that period and are still dealing with those issues.

"An extra £20 or so pounds a month may not seem a lot, but to those that are struggling it's £20 that they don't have.

"It's going to be tough, we can't pretend that."

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