Households are facing at least a £3,000 spending squeeze in 2022 as soaring energy bills send inflation through the roof.
Economists expect inflation to hit a 30-year high in what has been dubbed ‘Awful April’, forcing the Centre for Economics and Business Research (CEBR) to re-evaluate its already gloomy forecast less than a month after making it.
Chancellor Rishi Sunak is under increasing pressure from many in his own party to step up and ease the swelling crisis.
Experts predict basic household spending will be £2,440 higher than at the start of the pandemic. But on top of this, families are facing the added burden of a £600 national insurance hike and other tax rises.
The CEBR last month said the average household of two adults and two children could expect to pay £1,700 more in 2022.
But it has now revised the sums – estimating that inflation will hit at least 6.4 per cent in April, meaning that household spending rises by £47 a week or £203 a month.
The forecast includes utility bills, transport costs, as well as spending on food and drink, clothing, and recreation. Last month figures showed inflation was 5.1 per cent.