UK households paid £13,961 extra on bills since 2021, TUC says

UK households paid an average £13,961 more on essential bills since 2021, the Trades Union Congress said. The figure equals about £2,792 a year.

Mortgage repayments accounted for the largest increase, at £9,034 per household, or £1,806 annually. Loan costs rose by £1,911, while electricity and gas bills increased by £2,644 and water bills by £372.

The TUC published its analysis less than two weeks before Chancellor John Healey’s first budget, scheduled for 28 October. It said the cost-of-living squeeze was holding back consumer spending, which had recorded the weakest growth in the G7 compared with before the pandemic.

TUC proposals for the budget

TUC general secretary Paul Nowak called for protection from energy price spikes, a social energy tariff and measures aimed at poorer households and young people. The union body also backed higher capital gains taxes and higher taxes on banks.

The Treasury is preparing a “tightly focused” budget amid rising borrowing costs and the risk of a market backlash. The International Monetary Fund has urged Healey to continue reducing the budget deficit.

Business and tax demands

The Confederation of British Industry called for lower employer national insurance contributions, cheaper business electricity and changes to business rates. The Institute for Public Policy Research separately proposed raising £16bn, mainly through an increase in capital gains tax.

IPPR also proposed limiting private rent increases, capping typical household energy bills at £2,000 a year, freezing fuel duty and increasing housing support for Universal Credit recipients. The Treasury did not provide a comment.