Household bills to soar by more than £1,500 a year in big spending squeeze, experts say

HOUSEHOLD bills could soar by more than £1,500 a year with Brits forced to push their finances to the limit, experts have warned.

Price and tax rises could cost average families an extra £132 a month in what is set to be the biggest rise in household costs in a decade.

After energy prices went up this week, suppliers predicted that average households could face over £400 extra a year on power bills alone.

Prices will rise on October 1 from the current £1,138 to around £1,277, as announced in the latest energy price cap set by regulator Ofgem.

Bills for 11 million households on default tariffs will go up as major firms have come forward to announce they are increasing prices in line with the cap.

It is the second time this year that prices will have gone up, following an increase of £96 in April.

It will cost more to power the washing machine and even take a hot shower this winter

Myron Jobsonpersonal finance campaigner

It means the average household has seen a massive £235 added to their energy bills over the past year. 

The cost of petrol also went up, fuelling fears this will add up to the total additional costs families will have to fork out.

Other extra expenses Brits could face include higher train, telephone and internet fares.

In August, the price of food and drinks in shops and supermarkets rose by 1.1 per cent.

Sarah Coles, a personal finance analyst at Hargreaves Lansdown, told the : "This is a squeeze on spending at a time when many people’s financial resilience has taken a beating as a result of the pandemic."

Myron Jobson, personal finance campaigner at Interactive Investor, warned that Brits face "a bleak reality" of higher utility bills in the winter months.

He said: "It will cost more to power the washing machine and even take a hot shower this winter."

James Plunkett, executive director of Citizens Advice, said: "This price hike could lead to a perfect storm for families this autumn, hitting people at the same time as a Universal Credit cut and the end of furlough.

"It's particularly worrying given families on Universal Credit are far more likely to already be in energy debt.

"With bills rising and incomes falling, many families will find it hard to escape."