Money Wellness
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calendar icon05 Jan 2024

Families facing a further £5k cost-of-living rise in 2024

Soaring taxes, mortgages and food bills mean a typical middle-income family is facing a hit of nearly £5,000 in 2024, it has been claimed.

Analysis by the Liberal Democrats has shown households will be around £4,700 worse off, describing 2024 as the “year of the squeezed middle”.

The research shows an average middle-income family will pay £1,576 extra in tax, as a result of the government freezing income-tax thresholds.

According to the party, the cut to national insurance will be massively outweighed by the fact more people are being dragged into higher tax bands.

On top of this, typical households coming to the end of their mortgage deals are looking at paying an average of £240 extra a month – equivalent to £2,880 a year.

Finally, an average family’s annual food shopping bill is up £270 on this time a year ago.

Together, this means families will be shelling out an additional £4,726 a year – a hike of £393 a month.

Call for cost-of-living rescue package

In light of their findings, the Liberal Democrats are calling for extra support for those hardest hit by mortgage increases, as well as more help with energy bills.

Party spokesperson Sarah Olney MP said:

“People are worried sick about paying the bills and having to make big cutbacks just to get by.

“But instead of helping, Rishi Sunak is hitting families with yet more tax rises while the Conservative party soap opera continues in Westminster.”

Avatar of Rebecca Routledge

Rebecca Routledge

A qualified journalist for over 15 years with a background in financial services. Rebecca is Money Wellness’s consumer champion, helping you improve your financial wellbeing by providing information on everything from income maximisation to budgeting and saving tips.

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