NOW COST OF LIVING CRISIS REALLY BITES

BROADBAND PRICES UP TODAY — COUNCIL TAX, ENERGY BILLS GO UP TOMORROW

- Rachael Burford and Jonathan Prynn

MILLIONS of households have been warned that the worst cost-of-living squeeze on record will start to bite hard within days as more painful bill and tax hikes kick in.

The crunch starts today when hefty broadband tariff price rises come into effect, but gathers pace tomorrow when families will be hit by huge increases in energy bills and council taxes go up.

The rate of VAT on eating and drinking out also goes up tomorrow from 12.5 per cent to 20 per cent which is almost certain to mean higher restaurant bills. A second wave of pain comes on April 6 when a 1.25 percentage point rise in national insurance contributions to pay for health and social care comes into effect.

At the same time food producers across the country have warned of rocketing production costs that will inevitably mean supermarket shopping becomes more expensive.

Paul Johnson, director of the Institute for Fiscal Studies, told the Standard: “People have been talking about the cost-of-living squeeze for a long time. But it’s really going to start biting hard from the start of April as energy and tax bills rise.”

The squeeze is being caused by a combination of the disruptive effects of the Covid pandemic and the impact of the war in Ukraine, which has sent global energy prices soaring and hit production of food essentials such as sunflower oil.