"Everything is going up"- Norfolk family hit hard by rising cost of living
As part of #TheBigSqueeze we're exploring how the Arnoup's have been dealing with surging inflation and price increases across the board
Last updated 11th Apr 2022
As part of our #BigSqueezeCampaign we're exploring how big increases in the cost of living are affecting people in Norfolk.
From April 1st, the energy price cap went up which means a typical bill will rise by 700 pounds this year.
While there are warnings prices could go up again in October.
For families across Norfolk like The Arnoup's, the energy you use this morning will cost 54 per cent more than it did yesterday.
We spoke to Jo Arnoup who lives in Mattishall with her husband Sean and daughter Georgia.
She says they are having to make serious cut-backs now that the price of heating and hot-water is going up: "We're literally just putting the hot-water on for an hour a day if we haven't got the heating on, so we've got hot water so that we can shower.
"We've all been banned from having a bath in this house because that uses too much, so we've just got to shower.
"I like to relax in my bath with my book.
"We're also limiting ourselves to how the heating is coming on because our daughter gets up really early for work, it's coming on for an hour so the house is warm for her and then we have it on for a couple of hours in the evening.
"But, to be quite honest we've been going to bed early to keep warm, we don't even want to sit in the lounge to watch TV at night, because it's just too cold".
Fuel and food
Energy prices aren't the only things going up.
The cost of fuel and food are on the up and don't look like slowing soon.
A litre of petrol now costs over 163p and a litre of diesel over 177p. The highest they've ever been at the pumps.
While the cost of food increased by just over 5 per cent last February- the highest inflation rate produce on our shelves have undergone since September 2011.
Nine in ten people in the East say they've seen an increase in the cost of the weekly shop.
Jo told us what this all means for them: "I try and tie that filling up the car in with doing a weekly shop because we're going out anyway, so I'm not running here, there and everywhere.
"It does make you think, do I really need that? We're almost going back to how we were with Covid, where we're all stuck at home because nobody can afford to go out.
Previously I would have thought, I'll just pop out and pick whatever up. I have started using our local shop and farm shop a lot more.
"Things are slightly more expensive, but we've got to work out is it cheaper to go there and buy something that's slightly more expensive than run into town and use a gallon or two gallons of fuel?
She also told us that she's unconvinced that the Government's recent 5p cut to fuel duty is doing much to help families: "You're not really seeing that come off anywhere. They ask you to use public transport, well when you live in a rural community like ours public transport is pretty much zero.
"The amount of times I've had to drive Georgia to work because the bus hasn't turned up. That's costing us as a family to drive into Norwich."
The Consequences
Data from the Office for National Statistics shows that one in three of us in the East have reduced the amount of money we spend on the weekly shop, owing to rising household budgets.
While one in five of us are struggling just to pay our energy bills because of the latest price rises. While more than half have cut back on shopping for non-essentials.
With around 50 per cent of people in the East saying they're spending less on things like holidays and going out, because they are struggling to afford it.
Jo told us about the sacrifices she's making to balance the budget: "I do budget a lot more and look at what I'm buying and think, 'do I really need it or will it go to waste?' I've even started making my own bread again, but then putting the oven on costs money. You really can't afford to be blase you've really got to stop and think, if I'm putting the oven on I've got to be making lots of things instead of just one or two.
"My parents live in North Yorkshire and I'd love to go and see them. But, it's that drive and how much fuel it's going to cost that's the issue. Therefore I tend to zoom with my family instead of going to actually see them at the moment. I still feel that I'm in a bit of a lockdown due to the costs.
"We have in previous years done a lot of motor-racing. We'll go down to Silverstone, Brands Hatch or wherever. But how we're thinking just for a day out do we really to put all that fuel in the car, drive down there and buy food there that's going to be inflated? When you can just sit at home and watch it on TV".
Are the Government and energy companies doing enough
Chancellor Rishi Sunak announced his Spring Statement at the end of March, admitting beforehand that he 'can't solve all the problems' but that he would 'help with costs where he could'.
As part of this, he promised to introduce a temporary 5p cut in fuel duty, an increase to the household support fund (to the tune of £500 million) and a reduction to the basic rate of income tax, among other things.
But Jo doesn't think these measures go far enough:
"I don't it does anything to be honest. We had a letter through saying that we're going to be getting a £150 rebate on our council tax. Then that's gone up, so in retrospect you're not really gaining anything. We were laughing about it saying that they give it with one hand and take it away with another".
She believes that industry should foot more of the bill, as inflation surges:
"I think the Government need to come down hard on the energy companies, definitely. I mean you look at Shell and BP, and all the profits they announced not that long ago. It makes you think, hang on a minute that's just ridiculous there's people that really cannot afford to put their heating on and they should be helping those people, because things like National Insurance are going".
Help and support on offer
There is some help out there... 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 years energy bill, which you'll have to pay back over the following five years.
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 £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.