UK economy grows by 1.3% as cost of living crisis clobbers family budgets
THE UK economy grew by 1.3% at the end of last year despite a cost of living crisis squeezing millions of families' budgets.
Official figures show that the gross domestic product (GDP) rebounded between October to December last year.
It has grown at a faster rate than what experts previously expected, with economists estimating it would grow 1% during this period.
The bounce back came at a time when the country was hit by the rapid spread of Omicron.
Now, the UK's economy is now 0.1% below its pre-Covid level, Office for National Statistics director of economic statistics Darren Morgan said.
He added that the economy "grew a little stronger than we first thought" in the last quarter of 2021.
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But he added that household savings were at their lowest level since the start of the pandemic as families are spending more for "rising prices".
The ONS measures gross domestic product monthly and it shows if the economy is growing or not.
The economy took a series of big hits over the Covid crisis when businesses were forced to close.
But the economy has rebounded since - and at a time when a cost of living crisis is hitting millions of families.
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Energy bills, fuel, food and transport costs have soared, leaving millions of families facing tough decisions between paying for heating or eating.
And tomorrow will see energy bills DOUBLE for millions of households when the energy price cap goes up.
While other bills like council tax, water, mobile and broadband will also jump up, leaving families scrabbling to find enough cash to pay their way.
Rising prices have been driven by soaring inflation which has now hit 6.2% - an eye-watering high not seen in decades.
It means experts are expecting this to slow the UK economy's growth later this year.
How to protect your finances
While the economy may have grown, household budgets are taking a battering.
But there are a number of ways to buffer your budget against price hikes.
While food prices are on the rise, you'll want to try and cut the cost of your grocery shop.
Try hunting for yellow sticker food - this is produce that is nearing its sell by date that shops reduce to try and shift before the end of the day.
You could save up to 75% on these items.
While switching to a cheaper supermarket and signing up to various loyalty schemes, where you can get vouchers for money off your groceries, is also worth doing.
See if you can get extra help for soaring energy bills.
Some suppliers have hardship funds you can apply to - for example, British Gas and Octopus have both set up funds to help customers who are struggling with their bills.
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You could try and reduce how much energy you are using too - for example, you can reduce your bills with a simple trick such as putting foil behind your radiator.
You might be entitled to benefits to help you get by - use an online benefits calculator to make sure you're not missing out on any extra cash.
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