'Typical' UK household 'set to be at least £278 worse off' within weeks

UK households have been warned over a rise of key household bills - with utilities and council tax set to be hiked. Under the Labour Party government, council tax bills could be hiked by five per cent next year, it has been confirmed this week.

The council tax cap of 5% will remain in place in 2025, meaning local authorities could raise bills by an average of £109 for a band D property. And, energy bills could go up £12, water bills by £19, broadband by £23 and annual rail season tickets by £115 or more.

A typical household is set to be at least £278 worse off next spring. Shadow Chancellor Mel Stride told i: “The evidence is clear – Labour’s Budget of broken promises will make working people poorer. The Joseph Rowntree Foundation has already estimated that the average family will be £770 worse off in real terms by the end of this Parliament, and this new analysis just further underlines the damage this Budget will do to family finances.

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“The British public will not forget Labour’s tax hikes and their impact on living standards.” John McDonnell, the Labour veteran who was shadow Chancellor under Jeremy Corbyn’s leadership, said: “Faced with these rising cost pressures, the Government must certainly revisit the two-child benefit limit – but we need further effective action from Government to prevent more families falling into poverty, which should include basic food price and rent controls.”

Liberal Democrat Treasury spokesperson Daisy Cooper added: “Years of mismanagement and unfair tax hikes by the previous Conservative Government hit people’s living standards, and sadly the cost-of-living crisis has not gone away. It’s worrying that this Government seems to be making many of the same mistakes, with a tax on jobs, cuts to winter fuel payments and increases to people’s bus fares.” She said ministers “must deliver” on their promises to boost living standards.

A Treasury spokesperson said: “We have taken the tough decisions to deliver economic stability after inheriting a £22bn black hole, and have boosted public investment by over £100bn over the next five years to mend our crumbling public services and drive prosperity in every part of the country.

“To support households with the cost of living in the short term, we have increased the national living wage, protected payslips from higher taxes, and for the poorest families, have boosted the household support fund and discretionary housing payments by £1bn to help with essentials such as energy, food bills and rent.”