UK households are facing mounting cost-of-living pressures as Chancellor John Healey prepares to unveil his first Budget on Wednesday, with government borrowing costs at historic highs. BBC News spoke to people on a range of incomes about their financial struggles and what they hope the Budget will deliver, revealing widespread concerns about energy bills, housing affordability, fuel costs and support for young people seeking work.
Chloe, 40, a single mother from south London, said her energy bill has risen sharply and she now pays about £200 a month on gas and electricity. She has cut back on luxuries like visits to M&S and the cinema, and tries to limit her weekly food shop to £40. She cannot reduce her £200 council tax bill or spending on medicines for her health conditions including rheumatoid arthritis. "I don't access benefits but I work full-time and it's hard," she said, asking whether the government could help with her tax bill. Robert Portlock, 29, from Gateshead, wants to move out of his parents' home but cannot afford to. Rent for a small flat in his area would cost about two-thirds of his monthly wage, and he spends £750 a month on car finance, insurance, fuel and tax for his 32-mile round trip to work at Newcastle Airport. He called on the chancellor to cut fuel duty and income tax, or increase the personal allowance from £12,570 to about £16,000.
Emily Nelson, 19, from Swindon, has been unable to find work since completing her A-levels last year and receives £338 per month in universal credit. She wants the government to provide more funding to businesses to hire young people and extend the Jobs Guarantee scheme, which guarantees fully funded, six-month paid jobs for 18 to 24-year-olds on universal credit who have been looking for work for 18 months. She believes people should be eligible after a year instead. Dave Herbert, 48, a professional driver from Ynysddu, spends around £350 a month on petrol, 40 to 50 per cent more than at the start of the year. He commutes 62 miles round trip to Cardiff and said fuel prices have been "crazy". He wants the Budget to drastically remove or reduce fuel duty, noting that the main rate has been frozen at 57.95p per litre since March 2011.
Christine Morris, 78, a retired pensioner from Worksop living on state pension and a small private pension, said it is "very difficult to balance the books" and she is spending more of her savings to live. She wants relief on electricity standing charges for people living alone and extended access to pension credit, a means-tested benefit for people at state pension age receiving £238 or less per week. She currently receives £241 and just misses out. Jonathan Whitwam, 52, from Essex, works in finance and supports two daughters through university. His daughters will start working lives with between £45,000 and £60,000 of debt each, with interest compounding at £5,000 to £8,000 per year. He called for interest to be waived or capped below 1 per cent and welcomed higher taxes on wealthier earners, new taxes on oil, gas and banking sectors, and a one-off wealth tax on people with assets over £10m.
The range of concerns reflects how different groups face distinct financial pressures. For savers and pensioners, higher fuel costs and energy bills are eroding savings; for younger people and workers, housing affordability and job prospects are limiting opportunities; for families, education costs are creating long-term debt burdens.