Cost-of-living support policies already out of date

Price rises continue to defy expectations.

• The Business, Energy and Industrial Strategy Committee has today published a report on energy pricing and the future of the energy market
• The report calls on the government to update its energy bills support to help the most exposed households and consider introducing a social tariff

Commenting, Myron Jobson, Senior Personal Finance Analyst, interactive investor, says: “The government has already pledged billions to help see consumers through the harshest cost-of-living crisis in four decades, but the tough reality is the most vulnerable households face the cruellest winter in decades.

“The cost-of-living support measures announced earlier in the year offer vital financial support worth up to £1,200 to the nation’s most vulnerable and £550 to most of the population - but they are already out of date. Ofgem has admitted that the energy price cap is likely to rise by more than its original estimate of £800, and households also have to contend with the escalating cost of food and heightened fuel prices.

“Consumers cannot rely solely on government financial support measures to stay financially afloat. The fact remains that individuals will have to do most of the heavy lifting to fortify their finances. With the worst yet to come, it remains important to take steps today to bolster financial resilience now to give you some peace of mind in the coming months. This may translate to doing an emergency budget, cutting down on non-essential spending and squirrelling away more money into a rainy-day fund if you can afford to do so. 

“Those struggling with their finances needn’t suffer in silence. Seek help and support – talking about money issues is the first step towards a solution. Those worried about being unable to meet payment obligations should contact their providers for support.”