Cost of living crisis: this is how much bills will rise for ‘average’ Birmingham family next month

The cost of household bills and mortgage payments for a typical family in Birmingham will hit a staggering £1,325 next month (October), exclusive analysis on behalf of BirminghamWorld shows.

This is £269 more per month than a year ago, a 25% rise. The analysis was based on a family with two adults on average wages and typical bills for Birmingham, living in an averagely-priced semi-detached house on a variable mortgage.

This family will be paying a combined £631.33 in utility bills and council tax from next month, after the new higher energy price cap hits, which is £190 higher than the same month last year.

They will also be forking out £845.73 on their monthly mortgage payment, £71.72 more than last year, as interest rates continue to climb. Taken together, these bills will take up 34% of the average couple’s take-home pay.

In the UK, the cost of living crisis is set to get worse this winter, after news the Ofgem energy price cap is going to rocket by another 80% in October. It is likely to cause inflation to rocket above its already record highs at a time when real-terms wages are falling and a recession is forecast.

Energy bill discount scheme

As the cost of living crisis gains further momentum, the Government has revealed a new energy bill discount scheme set to be rolled out for the winter months. This includes people in Birmingham who are finding it difficult to make ends meet, with a non-repayable sum of £400 available.

Households in Birmingham will see a £66 rebate on their energy bill in October and November 2022, which will increase to £67 per month between December 2022 and March 2023. The non-repayable discount will be provided on a monthly basis regardless of whether consumers pay monthly, quarterly, or have an associated payment card.

This means that where a person’s housing circumstances change during the 6-month period, such as those leaving or moving home, they will still benefit from the relevant portion of the total £400.

nergy companies will directly issue the fuel rebate and the method of payment depends entirely on how households pay their energy bills.

Direct debit customers:

The Energy Bill discount will arrive as a deduction to the monthly Direct Debit amount collected, or as a refund to the customer’s bank account following Direct Debit collection during each month of delivery.

Standard credit and payment card customers:

The Energy Bill discount will be automatically applied as a credit to standard credit customers’ accounts. This will happen in the first week of each month of EBSS delivery, with the credit appearing as it would if the customer had made a payment.

Smart prepayment meter customers:

The Energy Bill discount will be directly credited to the customer’s smart prepayment meters in the first week of each month of delivery.

Traditional prepayment meter customers:

These customers will be provided with redeemable EBSS Energy Bill discount vouchers or Special Action Messages (SAMs) in the first week of each month. These will be issued via SMS text, email, or post. Customers can redeem these at their usual top-up point.

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