Pay Bills

A third of Londoners are struggling to pay their bills amid rising household spending

Almost 80% of Londoners say their household bills increased over the past six months, a new survey for Town hall found.

A third struggled to pay bills while one in eight deprived themselves of the essentials or had to take ready to make ends meet, found YouGov.

Mayor of London Sadik Khan say it survey published on Tuesday highlighted the burden of rising food, energy and fuel costs.

He warned that upcoming changes to income tax – with the freeze on personal benefits – the imposition of the 1.25 per cent social care tax and changes to benefits threatened to plunge around 130,000 Londoners further into poverty.

But Mr Khan will also increase the cost of living, with a 5% rise in tube and bus fares due next month and his share of council tax bills rising by almost £32 a year, meaning that The average London household will pay nearly £400 a year for city-run services – up 8.8% from current levels.

Mr Khan said: “I am extremely concerned about the impact the spiraling cost of living is having on Londoners.

“Increased food and energy the prices are hitting Londoners hard and the government’s misguided changes to benefits and taxes will only make matters worse.

Katherine Hill, from 4in10 London’s Child Poverty Network, said: “A perfect storm of sky-high rents, sky-high childcare costs, impending fuel price hikes and soaring food prices means that families in London are struggling to meet the basic health needs of their children. food, a warm home and decent clothing.

The survey also found that 23% of Londoners said they were ‘financially comfortable’ and 36% said they were ‘doing well financially’.

But 13 of the Londoners said they were currently struggling to make ends meet, going without essentials or going into debt.

Due to the rising cost of living, 45% of respondents said they were spending less on non-essentials, 32% had stopped spending on non-essentials altogether, and 36% were buying cheaper products.

Energy costs would be a much bigger cause for concern than rent or mortgages, being mentioned by 75% of respondents, compared to 40% who were worried about rent or mortgage increases.

More than 70% of Londoners were worried about the future cost of living rising over the next year – those with household incomes below £20,000 a year, rent from local authorities and charities housing, or have a health condition or disability most likely to be affected.

The town hall said the cost of living was a challenge before the pandemic, with prices in London 7% higher than the UK average.

In addition, housing costs represent a larger share of income and the average weekly wage is 5.9% lower than in 2010 when adjusted for inflation, compared to 0.9% in the UK.