The Squeeze On Household Budgets

Household budgets are at breaking point

 

Yet another Conservative Council Tax rise will clobber people at the worst possible time, when they are already facing higher energy bills, cuts to Universal Credit, and a Conservative tax rise on National Insurance

In the 2021 Autumn Budget the Chancellor sneaked out yet another council tax rise: he wants bills to increase by 9% in just three years, starting in April 2022. This will cost the average household an extra £348 in council tax by 2025.

Energy bills jumped 12% in October, with Ofgem announcing a £139 rise in default tariffs and £153 increase for customers with prepayment meters. Ofgem have warned that energy bills will almost certainly rise again in April 2022

Five million families on Universal Credit have just had their support cut by up to £1,040 a year - the largest overnight cut to social security since the Second World War. In some regions as many as one in five families are affected by the cut

The Conservative National Insurance tax rise will cost the average worker over £250 a year in extra tax. National Insurance contributions will increase by 1.25% from April 2022: a move that will cost the average person on a £30,000-per-year salary an extra £255

Another Conservative Council Tax rise will also clobber families in April 2022, at the same time as the National Insurance rises, and a further planned rise in energy bills. That is why Labour councillors are fighting to Stop The Squeeze for local people and demanding that the Chancellor rules out further unfair council tax rises by funding councils properly.

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Read more about the cost of living crisis that families are facing in the Stop The Squeeze campaign briefing and Council Tax FAQ and sign the petition if you are a Labour Councillor.