National Price Hike Day

Worryingly, that’s the figure for people on their provider’s standard variable rate - which is controlled by the energy price cap. If you’re looking for a fixed-rate deal the cheapest is currently £2,949.87, almost £1,000 a year more - a 227% increase. 

If you're looking to make some savings on interest rates and fees, compare current accounts to make sure you're getting the best deal.

According to the annual National Price Hike Report from the personal finance experts at money.co.uk, this increase is set to add an eye-watering 32.3 billion onto the total cost of living in the UK*. 

James Andrews, Senior Personal Finance Editor at money.co.uk, said: "Households across the country have already been hugely impacted by the cost of living and energy crises, and latest data compiled for National Price Hike Day offers no reprieve - especially when it comes to surging energy prices.

While we expected the figures to be bleak, to see that household energy prices have increased by a staggering 118% since last year, just adds to the financial misery being felt by many across the UK.

Latest data shows that the cheapest energy tariff for a medium user has surged from £903.45 all the way up to £1,971, meaning that in 2022/2023, households could end up paying more than twice the amount they did for energy last year. 

Elsewhere, the data reveals price increases for other expenses, including stamps, water, broadband/phone packages and a pint of milk. While these may have been expected, the figures add up to lay bare the true extent of the cost of living crisis in real terms - which sees the total cost of living in the UK increasing by more than 32.3 billion.”

Money Saving Hacks

Money.co.uk Personal Finance Editor James Andrews has provided some money saving tips to help counter this year’s steep price increases: 

“With energy on the rise, it’s more important than ever to make savings wherever you can. No amount of budgeting or saving tricks will completely offset this year’s massive price hike, however any cash you can claw back is a bonus."

Heating 

"When it comes to heating there are some simple hacks. Turn it off when you’re not in the house, in rooms you don’t use or down by a degree or two when you are there (you probably won’t notice a small change in temperature). Also use draft excluders, reflector panels and insulation to keep the heat in."

Water

"In terms of water, while there’s nothing you can do to change your water provider, minimising wastage is the best way to keep costs down.

Fix any plumbing issues that result in leaking taps, install a water metre, store drinking water in the fridge so that you don’t need to run the tap to get it cold, and wash up using a bowl instead of simply running the tap constantly."

Broadband and phone

"In previous years, it was a good idea to shop around with different providers if your energy bill was on the rise to bag a deal. However, in the current climate it’s better to stick on the standard variable rate that is being limited by the price cap, but there are savings to be made elsewhere such as broadband and your phone - so shop around for the best deals.”