WATCH: Record numbers contact Citizen's Advice for crisis support

Families feeling #TheBigSqueeze "exhaust" their options to reduce spending as cost of living crisis continues

Author: Mick CoylePublished 11th Apr 2022

A record number of people are contacting Citizen's Advice for crisis support, as #TheBigSqueeze on household finances takes hold.

The cost of living crisis has ramped up for families across the UK as the energy price cap sends bills soaring 54% - with more increases forecast for October.

WATCH: "We're seeing people turning their fridge-freezers off" Kayley from Citizen's Advice joins us for a Greatest Hits Radio news special

The average household will now be paying £2000 for gas and electric, and it could be closer to £3000 by the end of the year.

That's on top of increases in the cost of the food shop, and the prices at the petrol pumps.

Inflation could hit close to 9% later this year, which will push up prices even more.

How much is the cost of living crisis affecting people?

So far, Citizen's Advice has received more than 50 thousand calls this year, which is a higher rate than at any time during the coronavirus pandemic.

Kayley Hignell is Head of Policy for Families, Welfare and Work.

She told Greatest Hits Radio: "We're seeing people having to turn their fridge and freezers off, taking their washing to their mum's to get that cleaned.

"Things like petrol prices are really impacting as well, things like childcare costs which are really essential so people can work and make work pay.

READ: Why is everything going up in price? Get the latest on #TheBigSqueeze and why it's happening

"I think we've lost track of the number of people we've seen who are up at night worrying about their bills, thinking how are they going to cover everything, and feeling like even with actions taken by the government so far, feeling like they've got no options."

Kayley is urging anyone who is struggling to contact Citizen's Advice to see if any further help is available, such a benefits or discretionary funding pots at local council level.

"I think a lot of people are getting nervous, and getting worried about this (cost of living crisis) We do tell people to get advice from Citizen's Advice, or someone like us, so we can make sure you've exhausted all those options."

How do I contact Citizen's Advice?

You can contact Citizen's Advice through their website.

There are also services linked to mental health and financial worries through the Money and Mental Health Policy Institute

#TheBigSqueeze on household budgets

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.

Hear all the latest news from across the UK on the hour, every hour, on Greatest Hits Radio on DAB, smartspeaker, at greatesthitsradio.co.uk, and on the Rayo app.