A new survey reveals that energy prices are now the primary worry of almost half (50%) of British households.
49% of respondents said that recent increases in electricity and gas bills are more concerning than the pandemic as winter draws near.
Redfield Strategies and Wilton Strategies for MailOnline surveyed 33% of respondents. They admitted to turning off the heat in cold conditions in order to reduce their energy bills.
Four out of 10 respondents stated that they had turned the heating down and the other half said that they were more comfortable wearing indoor clothes.
A third (33%) said that they are cutting back on spending to keep their expenses under control.
It comes the day after it was claimed the average British family is more than £1,000-a-year worse off due to soaring inflation.
The Office for National Statistics (ONS), which reported that the Consumer Prices Index, (CPI), inflation rate rose from 3.1 percent in September to 4.2 percent last month. It is at its highest since December 2011.
49% of respondents said that recent increases in electricity and gas bills are more concerning than the pandemic as winter draws near.
Redfield Strategies and Wilton Strategies for MailOnline surveyed 33% of respondents who admitted to turning off the heat in cold conditions in order to reduce their energy bills.
Surging electricity and gas prices have contributed to a larger-than-expected increase in living costs. Last month, regulator Ofgem raised the cap on energy prices by 12 percent. However, the numbers also reveal sharp rises in fuel costs and an increase in inflation across food, home goods and hospitality due to disruptions in supply chains.
With households spending an average of £508.50 a week on all areas in the financial year ending 2020 according to the ONS, Labour said this new CPI rate has seen the outlay go up by £21 a week, £93 a month or £1,111 a year.
The Party added that the Office for Budget Responsibility said last month that it expected CPI inflation to average 4 per cent next year, a figure which would leave the average household spending £1,058 more a year.
Experts believe that inflation combined with tax changes, like the recent personal allowance freeze or new social insurance levy will result in large price increases which can have significant impacts on living standards.
After last month’s unexpectedly large jump in living costs, interest rates are expected to increase before Christmas.
It has led to expectations that policymakers next month will take action to reduce inflation.
Many economists predict that December rates will increase to 0.25 percent from their historic low of 0.0.1%. This is because inflation pressures the Bank of England.
In the UK, the cost of living is on the rise due to rising costs. Prices for food, fuel and other necessities have all risen.
The UK has seen inflation rise to levels last seen in a decade, as the global economy recovers and the supply chain disruptions continue.
Inflation is expected to peak at 5% next April, according to the Bank’s earlier warning.
ONS reported that the Consumer Price Index inflation rate increased from 3.1% to 4.2% in September, and rose to 4.2% in October.
According to The Institute for Fiscal Studies price increases can have different effects on households depending upon how much people spend on particular goods or services. For example, housing and food costs account for nearly half the spending of the most financially poor.
This graph shows how the Consumer Price Index rates of inflation have been divided by household income and goods.
The November meeting was held without an increase to evaluate the state of the job market after furlough.
The Tuesday release of robust job data revealed that another 160,000 people were added to UK payrolls during October. However, there was not a large increase in redundancies in spite of furlough closing on September 30.
It is highly probable that the Bank will raise its rates in December 16, due to these factors and an inflation reading of 4.2 percentage points higher than expected.