The government and the bank of England today has released today exactly what we can expect over the next few months regarding the cost of living. The Bank of England this morning has increased interest rates from 0.25% to 0.5%, which on average increases by £25 a month on a tracker mortgage repayment, compared to £15 a month for those with a standard variable rate.
The Government also advised that the price cap on gas and electric in the home will be rising by 54% in Scotland, Wales and England from April. This on average works out about £693 for the typical home using gas and electric. The price cap will be reviewed over summer and could change again in October, with a further possible rise. Rishi Sunak has stated there will be a discount of £200 on energy bills from October to be repaid at a later date by instalments across the next five years. He has also responded to these increases by giving back £150 in April to those households in A to D in council tax bands via a Council tax rebate.
Lastly, the inflation rates are thought to raise in April to 7.25%, with an average across 2022 of 6%. Over the last few months, we have all seen fuel, food, appliances and furniture increase in price, with it set to continue to rise, families are concerned about meeting the cost of living with household incomes not rising at the same rate.
READ MORE: https://www.bbc.co.uk/news/business-60197463
READ MORE: https://www.bbc.co.uk/news/live/uk-60236456