Cost of living crisis in 2022: How much could your bills rise in comparison to last year?
For millions of people in the UK, the cost of living is becoming unmanageable. How much will bills and taxes rise in 2022?
Unfortunately for UK households, 2022 is shaping up to be an expensive year as the cost of living crisis spirals out of control, with no more financial assistance from the government for the most vulnerable households.
Boris Johnson is facing mounting pressure to enact measures to curb the rise in the cost of living, but the Prime Minister has refused to budge, claiming that there are no plans for additional funding for low-income Britons.
He claims that lowering or eliminating VAT on energy bills will “end up lowering fuel bills for a lot of people who don’t need the help in quite the direct way that they need to give it.”
We must assist those who are suffering from a lack of fuel.”
Despite this, no additional funds are being set aside to assist those who are unable to afford to heat their homes.
Higher energy prices, rising inflation, and tax increases, according to the Resolution Foundation think tank, could have a “catastrophic” impact on the UK’s low-income households.
So, what are the most significant expenses that British citizens will face this year?
A new year will begin in April 2022, and with it, a higher rate of National Insurance payments.
Employee contributions have been increased by 1.25 percent to help pay for health and social care reforms.
The increase is expected to add £12 billion per year to the NHS backlog and the social care system as a result of the pandemic.
People currently pay 12% on earnings between £9,568 and £50,270, and 2% on earnings above £50,270 under the current system.
Those earning £30,000 per year will pay £255 more per year, totaling £2707.
Inflation is expected to reach 5% to 6% by 2022, resulting in price increases for everyday items.
Consumers began buying more after the early-2021 lockdown, which caused the rate to rise due to supply chain issues.
In November, inflation hit 5.1 percent, up from 4.2 percent in October, 3.1 percent in September, and 3.2 percent in August.
This means that good are now 5.1 percent higher than they were this time last year.
Energy bills are spiraling to unaffordable levels in the UK, a problem that affects every household.
“Brinkwire News in Condensed Form.”