It’s National Price Hike Day on April 1st, when government bodies and private firms traditionally announce the increases in the cost of goods and services. This year, energy costs are set to skyrocket, with the cheapest energy tariff for a medium user surging to £1,971 - a staggering 118% increase year on year.
Worryingly, that’s the figure for people on their provider’s standard variable rate - which is controlled by the energy price cap. If you’re looking for a fixed-rate deal the cheapest is currently £2,949.87, almost £1,000 a year more - a 227% increase.
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According to the annual National Price Hike Report from the personal finance experts at money.co.uk, this increase is set to add an eye-watering 32.3 billion onto the total cost of living in the UK*.
James Andrews, Senior Personal Finance Editor at money.co.uk, said: "Households across the country have already been hugely impacted by the cost of living and energy crises, and latest data compiled for National Price Hike Day offers no reprieve - especially when it comes to surging energy prices.
While we expected the figures to be bleak, to see that household energy prices have increased by a staggering 118% since last year, just adds to the financial misery being felt by many across the UK.
Latest data shows that the cheapest energy tariff for a medium user has surged from £903.45 all the way up to £1,971, meaning that in 2022/2023, households could end up paying more than twice the amount they did for energy last year.
Elsewhere, the data reveals price increases for other expenses, including stamps, water, broadband/phone packages and a pint of milk. While these may have been expected, the figures add up to lay bare the true extent of the cost of living crisis in real terms - which sees the total cost of living in the UK increasing by more than 32.3 billion.”
“With energy on the rise, it’s more important than ever to make savings wherever you can. No amount of budgeting or saving tricks will completely offset this year’s massive price hike, however any cash you can claw back is a bonus."
"When it comes to heating there are some simple hacks. Turn it off when you’re not in the house, in rooms you don’t use or down by a degree or two when you are there (you probably won’t notice a small change in temperature). Also use draft excluders, reflector panels and insulation to keep the heat in."
Fix any plumbing issues that result in leaking taps, install a water metre, store drinking water in the fridge so that you don’t need to run the tap to get it cold, and wash up using a bowl instead of simply running the tap constantly."
"In previous years, it was a good idea to shop around with different providers if your energy bill was on the rise to bag a deal. However, in the current climate it’s better to stick on the standard variable rate that is being limited by the price cap, but there are savings to be made elsewhere such as broadband and your phone - so shop around for the best deals.”
* ‘cost of living’ based on the average water bill, TV licence, energy bill, broadband, council tax and mobile phone payment
** costs are accurate as of 30.03.2022 but may be subject to change
James is our senior personal finance editor and has spent the past 15 years writing and editing personal finance news. He has previously written for ReachPLC, was money editor of Mirror Online and Yahoo Finance UK, and has recently been quoted in City AM, Liverpool Echo and Daily Record as well as featured on national radio shows TalkRadio and the BBC.
James has spent the past 15 years writing and editing personal finance news, specialising in consumer rights, pensions, insurance, property and investments - picking up a series of awards for his journalism along the way.