The Trades Union Congress (TUC) says the average UK household has incurred nearly £14,000 in additional costs linked to higher mortgage, loan, energy and water bills since 2021. The report, published ahead of the government's budget, attributes the rise in extra spending to soaring inflation over the past five years.
With less than two weeks to go before Chancellor John Healey delivers his first budget, the TUC urged the government to act to ease the burden on hard-pressed families. The union body warned that growing household bills are feeding through to wider economic weakness as consumers cut back on discretionary spending.
The TUC highlighted mortgages, consumer loans, energy and water charges as the principal drivers of the extra costs experienced by households. While the report ties the higher bills to an inflationary period that began in 2021, it calls on ministers to consider measures in the upcoming budget to relieve ongoing pressures on household finances.
Economists and campaigners have repeatedly argued that constrained household spending can slow growth, and the TUC said this dynamic is already apparent. The union organisation said government intervention in the budget could help stabilise incomes and support demand, although it did not set out specific fiscal prescriptions in the summary released with the report.
The publication adds to mounting pressure on the Treasury as it prepares to outline tax and spending plans. Healey, who took office earlier this year, will face scrutiny from unions, consumer groups and business representatives as he lays out his first comprehensive financial statement as chancellor.