The Bank of England is set to raise interest rates today, February 3, in an effort to curb inflation.
The increase is set to raise the cost of living in an attempt to combat the inflation increase of 5.4%, which is the highest rate in 30 years.
Along with an increase in mortgage repayments, energy prices are also set to rise for millions.
It is predicted that the average gas and electric bill will hit nearly £2,000 a year, as the government's price cap is raised.
Interest rates on mortgages are set to double from 0.25% to 0.5%, the second increase since December 2021.
The rising rate of inflation is also said to be adding £180 a year to food bills, while a rise in crude oil prices means that petrol prices are also increasing.
In addition, people across the country will face a rise on national insurance and council tax from April 1.
Speaking of the change, expert Martyn James said, 'It’s going to be Black Thursday. Millions of households across the UK are waking up to the reality of huge energy price rise hits, while inflation inches ever up and all the main bills we pay look set to rise.'
He continued to add, 'Whatever you do, don’t panic – there is help out there. But the Government need to know that it’s nowhere near enough for millions of hard-up people.'
The price cap hike on gas and electric means that suppliers will be able to increase the tariffs of 22 million households.
This has led to the prediction that tariffs will raise by 50% to around £1,915.
Another rise in the price cap is expected this coming autumn.
However, ministers are under increasing pressure to help those hardest hit; Chancellor Rishi Sunak in particular is facing pressure to cut VAT on gas and electric bills.
It has been reported that Prime Minister Boris Johnson and Sunak met last night to discuss the changes.
A package is reportedly being put together by ministers to help those hit hardest by the cost of living rise, which could be announced as early as today, although this is not confirmed.
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