"It's soul destroying" Essex father of three on the #BigSqueeze
As the energy fuel cap is lifted, we talk to a local family feeling the pinch
Last updated 11th Apr 2022
Families across Essex are facing a huge hike in their energy bills from 1st April, as the energy price cap is going up.
This means a typical fuel bill will rise by around ÂŁ700 this year, with a chance prices could increase again in October.
For most people, the energy you use this morning will cost 54 per cent more than it did yesterday.
These increasing prices, combined with rising food and petrol costs, and low, or no, pay increases will see a squeeze on incomes, and many families are likely to experience difficult financial times.
We've been speaking to a local family, the Nickless' to find out how they're coping with #TheBigSqueeze.
Colin Nickless lives in Southend on Sea with his wife, Jessica, two of their three children, and their pet dogs.
Their third child lives in a residential school for disabled children, where she receives suitable care for autism and cystic fibrosis.
Colin works nights as a carer for people with Dementia, whilst his wife works at a call centre.
Like many in the county, they've been feeling #TheBigSqueeze.
Energy Bills
Like most, Colin says his energy bills have shot up: "Before we were having direct debits that were just below ÂŁ150 a month, then they wrote to us and said they were putting our bills up to ÂŁ217 a month.
"They then wrote to us again and said it still wasn't enough and that our bills would be increasing to ÂŁ375 pounds a month...
"The cost of heating our home and providing energy is now ÂŁ4500 a year - that's a huge amount."
He says the steep increase has caused them to think really carefully about how and when to use their energy, and when they can avoid using it: "We don't heat the house as much, only really when the kids are home.
"Even then when they're at home, we'll only heat certain areas of the house, or we'll sit under duvets in the living room, because any heating you have on, you're very aware that that's cash flying out of the window."
Making tough choices like these is having a real impact: "It's soul destroying. You don't want to be existing just to pay bills but that's what it feels like for a lot of people.
"You're denying a lot of things which are really a basic human right. If you look at things like government legislation, they say you have the right to a warm home, so if you can't afford to have a warm home, that's a basic human right that's being cut."
Other Price Rises
Nine out of 10 people in the East of England say they've noticed an increase in the cost of the weekly shop.
Alongside rising energy bills, The Nickless family are being affected by rising fuel and food costs too: "I wouldn't say we're one of those families that sits down with a spreadsheet or anything, but we do notice when prices increase.
"We've really felt the squeeze over the last six months."
Colin says the recent increase in the cost of fuel, which saw prices rise to ÂŁ1.73/litre for diesel and ÂŁ1.63/litre for petrol, had a big impact: "My daughter's in a special residential school for disabled children which is 109 miles away.
"We haven't been able to go and see her as much... when the cost of filling up has gone from ÂŁ70 to ÂŁ100 or ÂŁ120."
They've also noticed shopping is more expensive than it once was: "At the supermarket you can really see how products have started getting more expensive, or they do the thing where the product's shrunk but still the same price.
"It's a lot of stealth increases and they're really starting to hit home."
They do their best to combat rocketing prices, but Colin says there's a limit to what they can do: "We've always tried to be a bit savvy with our shopping. We're part of a local food club which collects things that are going to go out of date, or which are overstocked by supermarkets, and then offers special deals, like where you pay ÂŁ3 a week to get ÂŁ10 worth of food.
"We also always look for Lidl's ÂŁ1.50 veg box, but there's only so much you can do really, and it will only stretch so far."
He says recommendations to stop unnecessary spending are not useful to his family, or others in similar conditions: "It's very difficult because you can only cut so much from a budget.
"There's no luxuries to cut from these budgets, people are back to the bare bones already."
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 ÂŁ150 refund to part-cover the rising costs,
There'll also be a ÂŁ200 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."
Citizen's Advice tells us they're seeing more people get in touch with them now than at any point during the pandemic.
It says over 50,000 people have already asked for crisis support this year.
WATCH: "We're seeing people turning their fridge-freezers off" Kayley from Citizen's Advice joins us for a Greatest Hits Radio news special
You can contact Ctizen's Advice through their website.
There are also services linked to mental health and financial worries through the Money and Mental Health Policy Institute.
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 ÂŁ1 last year will now cost ÂŁ1.06.
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 ÂŁ2000 per household.
It's thought it could go up to closer to ÂŁ2500 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 ÂŁ1.60 a litre, and its more than ÂŁ1.70 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 ÂŁ20,000 per year will take home ÂŁ89 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 ÂŁ330.
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.