Since 2016, how severe have the price hikes in April become?
It's that time of year again! Brace yourself for April price hikes as the government, NHS, Royal Mail, and many other businesses jump on the incremental price increase bandwagon for everyday items, services, utilities, and events.
Occasionally, the price hikes are minuscule and go unnoticed by consumers. However, at other times, they can substantially impact household budgets, such as the upcoming 4.99% rise in council tax which will impact millions or the whopping 14.4% surge in broadband costs this year, which include BT, EE, Vodafone, and Plusnet.
The cost of living crisis is hitting households hard, because everyday expenses are increasing much faster than incomes. Between 2016 and 2023, the median annual earnings for full-time employees in the UK increased by just 17% from £28,195 to £33,000.
The team at My Community Finance has delved deeper into April price hikes, alongside a snapshot of popular items that have gone up in price over the past seven years, identifying the top culprits of incremental increases that surpass the median annual earnings increase of a UK full-time worker.
- Energy bills - a 120% increase
- Butter - a 67% increase
- Stamps - a 72% increase
- Used cars - a 70% increase
- Milk - a 64% increase
- Glastonbury ticket - a 47% increase
- Petrol - a 43% increase
- BT line rental - a 39% increase
- A house - a 36% increase
- Season rail tickets - a 26% increase
- Childcare - a 24% increase
- Pint of lager - a 22% increase
- Amazon Prime - a 20% increase
The average household energy bill - a 120% increase
2016 - £1,134.00
2023 - £2,500.00 (Without government assistance, £2,100 with)
The average price of a block of butter per 250g - a 67% increase
2016 - £1.40p
2023 - £2.34p
A first-class stamp - a 72% increase
2016 - 64p
2023 - £1.10p
The average retail price of a used car - a 70% increase
2016 - £10,736
2023 - £18,268
The average price of a pint of milk - a 64% increase
2016 - 42p
2023 - 69p
A Glastonbury ticket - a 47% increase
2016 - £228
2023 - £335
The average price per litre of petrol - a 43% increase
2016 - 103.9p
2023 - 148.73p
Annual BT line rental - a 39% increase
2016 - £18.99
2023 - £26.35
The average price of a house - a 36% increase
2016 - £207,780
2023 - £281,684
An annual season rail ticket from Basingstoke to London - a 26% increase
2016 - £4,196
2023 - £5,292
The average cost of 50 hours a week of childcare for a child under two - a 24% increase
2016 - £217 per week
2023 - £270 per week
The average cost of a pint of lager - a 22% increase
2016 £3.47
2023 £4.23
Amazon Prime membership - a 20% increase
2016 - £79
2023 - £95
Founder and CEO of mycommunityfinance.co.uk, Tobias Gruber, said:
"Inflation has been an alarming and ongoing crisis over the past seven years, causing significant financial hardships for individuals and families. With the rising cost of necessities, coupled with stagnant wages, many people need help to make ends meet.
"Urgent action and effective policies are needed to address this pressing issue and alleviate the burden on the most vulnerable of its devastating effects. It's time for leaders to prioritise this issue and work towards a more stable and sustainable economic future for all."
About Tobias Gruber
Tobias Gruber is the founder and CEO of My Community Finance. For the past 30 years, he's been a prominent leader in investment banking and asset management for some of the sector's most renowned banks, including Credit Suisse, SwissBank, JP Morgan and Morgan Stanley.
Fast forward to 2018, Tobias launched My Community Finance to provide a platform for the financially excluded, helping people to get back on their feet with ethical and socially responsible lending. Within 36 months, My Community Finance has become accountable for 25% of borrowing within the credit union sector.
Tobias has experienced first-hand how certain areas of the finance world are ripe for change and is a passionate advocate for using fintech to help people and solve society's economic problems.
About My Community Finance
My Community Finance is on a mission to transform how its customers manage their money by giving them access to ethical alternatives through two of the U.K.'s biggest credit unions: My Community Bank and Castle Community Bank.
Credit unions give a lifeline to customers who struggle to access mainstream credit by introducing them to financial communities that don't prioritise profits and whose unique regulatory structure means they can offer fairer rates.
Based in London and launched in 2018, My Community Finance is fully authorised and regulated by the Financial Conduct Authority and is a trading name of Amplifi Capital (U.K.) Limited, which has offered ethical and responsible financial products to near-prime consumers since 2015.
