‘A tragedy’: Britain’s cost-of-living crisis worsens as rents soar and energy bills top $5,000

The Bank of England warned last week that the U.K. will enter recession later this year. The expected recession is forecast to be the longest since the global financial crisis.

A skyrocketing energy price cap and eye-watering rental prices are just two of the factors contributing to the U.K.'s cost of living crisis.

Wilson told CNBC that people are finding life difficult with energy prices going up, food prices going up, and many people struggling to pay their bills.

According to an analysis by management consulting firm Cornwall Insight, energy bills are expected to reach over $4,200 per year from January. Rent prices are up in the UK according to Zoopla.

A typical household will pay over $4,300 per year for the first three months of 2023 if Cornwall Insight's predictions are correct.

The average bill has gone up by more than $4000 due to the increased forecasts for the price cap.

The price cap was set by the Regulator Ofgem.

Craig Lowrey, principal consultant at Cornwall Insight, said that an increase of over £650 in the January predictions came as a surprise.

He said that the cost-of-living crisis was already top of the news agenda as more and more people faced fuel poverty.

Fuel poverty is when a household can't afford to heat or cool their home.

According to the End Fuel Poverty Coalition, 9.2 million U.K. households will be in fuel poverty from October 1st to January 1st.

Simon Francis, co-ordinator of the End Fuel Poverty Coalition, said that the new estimates show that the government's support is just a drop in the ocean.

Don't Pay UK is a campaign that encourages people to cancel their energy bill direct debits if the U.K. Government doesn't act to reduce costs.

The campaign website shows that more than 94,000 people have pledged to strike.

A high street decorated with British Union Jack bunting in Penistone, UK. The End Fuel Poverty Coalition has warned “a tsunami of fuel poverty will hit the country this winter.”

The U.K. government spokesman said the movement was highly irresponsible. If you don't pay your energy bill on time, your supplier may install a prepayment meter in your home.

Boris Johnson doesn't have any plans to act on the cost-of-living crisis in the short term, but it's up to his successor to make those decisions.

The Conservative Party leader contender's plans to tackle the crisis must be made public.

In an interview with The Financial Times, the front-runner to be Britain's next prime minister said she would lower taxes.

There is no doubt in Sunak's mind that more support will be needed and that he will act as soon as possible.

The Bank of England warned last week that the U.K. will enter its longest recession since the global financial crisis.

Rental prices soaring

Rent prices in the UK were up in May compared to the previous year, according to Zoopla.

According to the property site, prices are being driven by high demand in city centers, but will start to put a limit on further rental growth due to increased prices.

In March, Citizens Advice found that one in six tenants were worried about being able to pay their rent in the coming months, and one in five tenants expected their rent to increase.