Families across Bucks, Beds and Herts continue to feel #BigSqueeze on finances
Our #BigSqueeze coverage will find out how families are coping in the region
Last updated 10th Apr 2022
The average household is expected to be around £1000 worse off this year due to rising costs of energy, fuel and food.
Last week the energy price cap lifted leaving the average household's likely to pay up to £693 more on energy bills per year.
It follows food cost inflation and unprecedented highs in the price of petrol and diesel, forcing some families in Bucks, Beds & Herts to make compromises.
The energy bill rise is due to regulator Ofgem increasing the price cap on standard and default tariffs by 54%, meaning the price cap will go from £1,277/year to £1,971/year.
Nine in ten people in our region have also reported seeing the cost of their weekly shop go up.
But, if you pay council tax on a house in Band A to D, you'll get a 150 pounds refund to part-cover the rising costs.
And there will be a 200 pound deduction on this year's energy bill, which you'll have to pay back over five years from 2023.
It's among a number of plans put in place by the Government to mitigate the impact of the living cost crisis, including a raise in the national insurance tax threshold.
Support
The government have announced some support to help those affected by the big squeeze.
If you pay council tax on a house in Bands A to D, you'll get a £150 refund to part-cover the rising costs,
There'll also be a £200 pound deduction on your energy bill this year - crucially, though, you'll have to that pay back over the following five years.
However, families like the Nickless' say this isn't enough.
Colin would like to see the government do more: "If you want to look after the people in your country, you have to increase wages at some point.
"Inflation is going to keep going up, the cost of living is going to keep going up, and if you don't, we'll get to the point where people just can't afford to live."
Heather-Joy Garret from Aylesbury Foodbank says they're supporting record numbers of families.
In 2016-17 they fed 745 families, but in January 2022 alone they supported 833.
"We're providing parcels of food that are three days food at least."
"It's three meals but it's also tea and/or coffee. We also offer toothpaste in every box, we offer shower gel in every box, we send out toothbrushes, loo roll, cat and dog food..."
She also says they have a financial support scheme to help people with rising bills:
"We've put some money in a pot and if people need money quickly, for up to about £120, we can give them that money straight away and then put their case on a website and people pay the money back."
"We've been running that scheme since November and we haven't lost any money at all."
If you're struggling with the big squeeze, click here for advice.
Why does everything cost so much?
The government say global supply chains, and the uncertainty cause by war in Ukraine is responsible for the cost of living increase.
Inflation is the measure by which we record how much prices are rising across the UK.
At the moment, it's just over 6%, so something that cost £1 last year will now cost £1.06.
It's thought it could hit close to 9% later this year.
Energy prices
The cost of energy is skyrocketing because of increased demand since economies opened up after months or years of coronavirus restrictions.
Most of our homes are gas-powered through central heating, and a large part of our electricity comes from gas too.
The price cap, which was designed to stop companies charging too much, is now setting the minimum amount you can pay, after looking at national and global supply factors.
Earlier this year, Ofgem decided 54% was a fair increase for energy companies to charge, pushing bills up to around £2000 per household.
It's thought it could go up to closer to £2500 a year if prices on the wholesale market continue to rise.
Petrol and diesel
Demand for petrol and diesel has done the same to prices at the pumps, which saw record amounts charged at filling stations throughout March.
Unleaded now regularly costs more than £1.60 a litre, and its more than £1.70 for diesel.
Wholesale prices are rising, as people return to workplaces after months or years of working from home, and demand for items in shops and online means fuel is in massive demand.
That means higher prices too.
Grocery shopping
The route items take to get to our supermarket shelves has also been disrupted by coronavirus, and new rules and red tape introduced because of Brexit.
That's pushed up prices too.
At the moment, prices are increasing by more than 5% on last year, which could hit as high as 8% later this month.
National insurance
The government announced last year they were pushing up the National Insurance rate to pay for social care.
For most people it comes directly out of your wages, just like tax.
A 1.25 percentage-point rise introduced by Chancellor Rishi Sunak will mean someone earning £20,000 per year will take home £89 less compared to last year, but a change to thresholds announced in the Spring Statement now means a typical employee will take home an extra £330.
Pay rises that don't match inflation
At any other time, we'd be celebrating the highest pay rises in a decade, with some staff seeing a 3% rise in their salaries this year.
But given inflation is currently higher than 5%, it actually means you're actually worse off, as your new pay amount won't match the increase in the things we want or need to buy.
What are the consequences for families in our region?
Latest stats show one in three of us across the region have reduced the amount of money we spend on the weekly shop.
Research also shows around 40% of us are doing less non-essential car journeys, while more than half have cut back on shopping for non-essentials.
Heather-Joy Garret from Aylesbury Foodbank is the only person with an income in her household and she is worried about what the future holds.
"I have an adult daughter living with me at the moment, who has had serious mental health problems."
"She's therefore had no income, because she hasn't been well enough to claim. It's so difficult to negotiate the benefits system if you are mentally ill."
Heather-Joy has also been telling us about some of the sacrifices she'll have to make in the coming weeks.
"No meals out, no takeaways..."
"I knit and sew so I'm going to have to stop buying yarn, and I'll have to use up all that stash I've got hidden around the place!
"And more generally, more batch cooking...make do and mend! I'll survive, I'm fairly sure, but a lot of people won't."