Spring Statement 2022: 8 price hikes adding to cost of living from April - from energy bills to council tax
The Chancellor’s spring statement comes after UK inflation soared to a new 30-year high in February
Chancellor Rishi Sunak delivered his spring statement on Wednesday (23 March), setting out plans to tackle the UK’s deepening cost of living crisis.
The statement came amid increasing pressure to help households with spiralling costs after UK inflation soared to a new 30-year high in February.
Rising energy, goods and food prices helped to push inflation to 6.2% in the 12 months to February, Office for National Statistics (ONS) figures revealed this morning, just hours before Mr Sunak’s speech to the Commons.
Consumer Prices Index (CPI) Inflation is up from 5.5% in January, marking the highest level it has been since March 1992 when it stood at 7.1%.
The rise was higher than expected and comes after inflation rose across 10 out of the 12 categories that feed into the index, including food, clothing, footwear, and a range of products and services. Only communication and education did not see an increase, the ONS said.
The Chancellor has pledged to “stand by” households and announced fuel duty will be cut by 5p per litre for a year up until march 2023.
He confirmed that the Household Support Fund will be doubled to £1 billion and said the government would cut the basic rate of income tax from 20p in the pound to 19p in 2024.
Mr Sunak also unveiled a £6 billion plan to increase the threshold at which people start paying national insurance contributions (NICs) by £3,000 to £12,570 from July.
But what rising costs will households face from next month despite the latest announcement from the Chancellor? Listed are eight big cost of living expenses that will come into effect from April, and how it will impact bills.