Key facts
- Households with mortgages spent an average of £9,034 extra on repayments since 2021.
- Households with loans paid an average of £1,911 extra since 2021.
- Average electricity and gas bills increased by £2,644 since 2021.
- Average water bills rose by £372 since 2021.
- UK consumer spending growth is the weakest in the G7 since before the pandemic.
UK households have collectively paid an additional £13,961 on average for mortgages, loans, energy, and water bills since 2021, according to a report by the Trades Union Congress (TUC). The union body's analysis of official figures indicates that soaring inflation, exacerbated by global events, has led to an extra £2,792 per household annually. This increase in living costs is contributing to weak consumer spending, which the TUC states is the slowest in the G7 since before the pandemic. The TUC general secretary, Paul Nowak, highlighted that working people have disproportionately borne the brunt of successive crises. As Chancellor John Healey prepares his first budget, the TUC is urging him to implement measures to support households, including a social energy tariff and increased taxes on banks and capital gains. The report also noted that mortgage holders have spent an average of £9,034 extra on repayments since 2021, while loan costs have risen by £1,911, and energy bills by £2,644.