UK households have paid extra £13,961 on bills since 2021 amid soaring inflation, TUC says
UK households have paid an average of £13,961 more on bills since 2021, according to Trades Union Congress analysis of official figures. The TUC says the rising cost of living is holding back consumer spending, which has grown more weakly in the UK than in any other G7 country since before the pandemic, and is urging the chancellor to act in the budget.
The extra costs average £2,792 a year across mortgages, loans, energy and water bills. Mortgage holders paid £9,034 more in repayments over the period, while borrowers with loans paid an extra £1,911; the article also says rents rose faster than mortgage costs. The TUC wants a social energy tariff and help for poorer households and young people, as forecasts suggest typical annual energy bills could reach £2,000 from January.
- Households faced £13,961 in extra bills on average since 2021.
- The TUC says high living costs are weakening consumer spending.
- It is pressing the chancellor for support in the budget.
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The cost of living is the amount households spend on essentials such as housing, energy, water and borrowing. Prices rose sharply after 2021, during a period of high inflation, while interest rate rises made many mortgages and loans more expensive.
The Trades Union Congress, or TUC, is a federation of trade unions that represents workers and campaigns on pay and living standards. It says higher household bills have constrained spending, and is calling on the chancellor to include support in the government’s budget.
The issue matters because household spending is a large part of the UK economy, and pressure on budgets can affect both living standards and businesses. Energy costs are one concern, particularly for people on lower incomes, who tend to have less room to absorb higher bills.
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The strongest fair case each way — we don't pick a winner.
The case for
The TUC’s case is that steep increases in essential costs have squeezed household budgets and weakened consumer spending, with the heaviest strain falling on people with low incomes and young people. A social energy tariff and targeted help could ease hardship and support demand, while the reported figures give the chancellor a reason to consider action in the budget.
The case against
A cautious case is that broad new subsidies or tariffs could add to public spending, shift costs onto other bill payers or weaken incentives to reduce energy use, so support should be tightly targeted and funded. The TUC’s figures describe average increases across several types of household costs; they do not by themselves show which policy would best address them or how much of the rise the government can reasonably offset.