Hundreds of thousands of people are starting to notice the effects as costs start to rise.
There is, however, more to come. The new electricity price cap will be implemented on Friday, and as we approach fall, the cost-of-living crisis is about to get worse. The important dates and events in the upcoming weeks that will almost certainly necessitate further belt-tightening are listed below.
26 Aug – Energy price cap announcement
The maximum price suppliers may charge customers in England, Scotland, and Wales for each power unit has received much discussion. The cap, which is intended to protect customers from short-term price surges, will go into effect on October 1st, according to regulator Ofgem. However, the cap is about to increase as well because fuel and electricity prices have been rising in the interim.
This suggests that the average yearly bill might be as high as £3,554 at this point, according to business experts Cornwall Perception. That is 2.5 times what people typically paid in October 2021.
According to Peter Smith of the National Vitality Motion, it will likely be a "gut punch for families across the UK. That is simply unaffordable and will cause many more people to live in gas poverty, which causes stress, cold homes, debt, and risky coping mechanisms."
September - School Starts
According to the organization The Kids's Society, the average cost of a uniform for secondary colleges in 2020 was £337 and for major colleges, it was £315.
According to a Barclaycard study, a quarter of parents anticipate spending more money this year than usual due to increased prices, while the other quarter plans to reuse old items rather than buy new ones.
One in five parents intends to give their children's old uniforms to someone who can't afford new ones in the interim. According to one organization, the demand for free college uniforms has skyrocketed recently.
This September, a new law will go into effect in England to protect parents from needless school uniform costs. It is meant to forestall households from having to shell out on too many branded objects. However, schools that need to find a new provider have until September 2023 to make these changes.
Despite all these mounting costs, some households are on the verge of receiving aid.
Starting on September 20, anyone receiving disability benefits will get a one-time cost-of-living payment of £150.
This fall, more than eight million low-income households receiving means-tested benefits could even get £324, the second instalment of a cost-of-living benefit. The £326 initial payment was made in July.
Those receiving tax credits should wait longer because the first instalment is due in autumn and the second instalment throughout the winter.
5 Sep – New prime minister to be confirmed
Rishi Sunak and Liz Truss are currently vying for leadership of the conservative party and the prime minister position.
Mr Sunak has promised money to help with energy bills whilst Ms Truss has pledged to immediately reverse the rise in National Insurance.
15 Sep – Subsequent determination on rates of interest
In August, the Bank of England boosted interest rates to 1.75%, and it is anticipated that they may rise once again, perhaps as high as 2.25%.
According to Andrew Montlake of Coreco mortgage brokers, a quarter-point increase on a £250,000 conventional variable charge mortgage, paid twice over 25 years, may mean paying an additional £30 a month.
Additionally, those with fixed-rate mortgages experience problems. "We're starting to witness cost shock," adds Montlake, referring to the unpleasant shock people experience when their fixed period expires and they are met with higher fees.
He says that it can take some time before you fully experience the effects of such price increases. "When you're faced with a spike in mortgage costs as well as a rise in electricity costs, that's when people may start to struggle over the next months and the beginning of the next year."
Though banks don't always pass on the total rate increase in relation to their savings accounts, any increase in interest rates is still good news for savers. For instance, Santander only applied the final half-point increase to its Assist to Purchase ISA; as a result, the rates on its other saver accounts only increased by one-fourth of a point.
1 Oct – New energy price cap comes in
The cap that was announced at the end of August will take effect in October, with bills expecting to rise to £3,549 a year. This is a 250% increase over the average bill last year.
At the same time, the first portion of the government's £400 power rebate should start to arrive soon. Up to March 2023, homeowners will pay less for electricity each month by £66 or £67.
19 Oct – Inflation figures linked to state pension and different advantages
The Office for National Statistics will announce the inflation rate for September, and this is the rate that will be used to determine the increase in the state pension that could become effective in April 2023.
The so-called "triple lock" will be reinstated after being suspended for a year due to pandemic-related financial concerns. This guarantees that the state pension will always increase each year in line with inflation, the increase in the average pay, or 2.5%, whichever is the best.
With inflation already at 10.1%, and expected to soar even further, pensioners will likely enjoy double-digit increases.
A budget is typically expected at the end of October, or early November. However, the incoming prime minister is expected to call an emergency budget in response to the current cost-of-living crisis.
3 November - Interest rates decision and Monetary Policy Report
After the last Monetary policy report was published in August, forecasting inflation to top 13% by the end of the year and predicting a long recession, there will be much interest in what the Bank of England will have to say about the current economic situation, with another rise in interest rates on the cards.
24 Nov - Next price cap announcement
Ofgem has announced that it will change the price cap every three months, rather than the typical every six months, in order to pass price rises and falls on to customers more quickly.
Industry analysts Cornwall Insights predict that the price cap will rise to £5,386 a year.
Nov./Dec. - £300 in living expenses for retirees
The Winter Fuel payment, worth £200 to £300, is paid to all homes with at least pensioner. In addition, they will receive a one-off £300 in November or December.
December – Christmas spending
Christmas Eve is typically the biggest shopping day of the year, apart from Black Friday. However, with energy prices expected to rise in October, and the general cost-of-living-crisis, shoppers will start saving up for presents much earlier than usual.
15 December - Next interest rates decision
The end of the year could see yet another increase in rates. The Bank of England will evaluate the situation at the time, but most forecasts predict that interest rates will increase to 3% in the coming year, with some speculating that they may even reach 4%.
Mid December - Rail fare increase
The government said earlier this month that regulated train tickets in England will increase below the rate of inflation the next year, though it has not yet specified what the exact figure will be. The increase will take effect in March 2023.
1 January - The availability of a subsequent power worth cap
The next price cap, announced in Autumn, will come into effect.