Rising household bills add to pressure on Labour as pain for consumers continues

The painful jump in household bills yesterday will push the UK's poorest households further into poverty.

- Phillip Inman

The painful jump in household bills yesterday will push the UK's poorest households further into poverty. The increases will also provide a further jolt to Labour ministers still reeling from a spring statement that has prompted accusations that their policies are Tory-lite.

The "squeezed middle", put in the spotlight by the energy secretary, Ed Miliband, back when he was the Labour leader, will also find that recovery from the post-pandemic inflation shock has slowed to a halt.

The increase in household outgoings has largely been driven by higher council tax and utility costs. A rise in council tax will push the average bill up 4.99% in 2025-26 to within touching distance of £2,300 a year.

Water bills will rise by an average £123 a year, or more than 20%, and the average increase in gas and electricity bills will be £111.

Inflation, which dipped to 2.8% in February, is expected by the Bank of England to rebound to 3.7% in late summer.

The harm from three years of high inflation is still resonating across the economy - and the last thing low-income and middle-income households need is another reason to economise.