UK households are facing a perfect storm of rising energy bills, food prices, and housing costs, according to new data from Citizens Advice. The charity warns that the 2023 Budget has failed to address the root causes of these issues, leaving many families struggling to make ends meet. Energy bills are set to rise by 80% in 2026, according to Ofgem forecasts, with the average household bill expected to top £2,000 by the end of the year. Food price inflation has also accelerated, hitting 12.6% in 2026, with meat and dairy products leading the increase. Housing costs, including rent and mortgage payments, are outpacing wage growth, making it even harder for households to afford the basics.
Citizens Advice is warning that many households will be forced to make difficult choices between heating and eating, as the cost of living continues to rise. The charity is calling on the government to provide more support for vulnerable households, including increased funding for the Warm Home Discount scheme and Universal Credit.
MoneySavingExpert's Martin Lewis is advising households to take action to reduce their energy bills, including switching to a cheaper tariff and insulating their homes. 'There are ways to reduce your energy bills, but it's essential to act now before prices rise even further,' he said.