Official inflation figures miss half the story. Here's what's actually happening to UK household budgets — and the policy decisions behind it.
The Consumer Prices Index is the government's preferred measure of inflation — but it excludes owner-occupier housing costs, understates the impact of council tax rises, and says nothing about the dozens of policy levies embedded in your energy bill. For millions of households, the real cost squeeze has been far sharper than the headline number suggests.
This category breaks down each major component of UK household costs with the actual data — what's risen, by how much, why, and what policy decisions are directly responsible. Understanding the forces behind your bills is the first step to managing them.
CPI misses owner-occupier housing, most council tax rises, and dozens of embedded levies. The real squeeze is bigger.
Read the analysis →Environmental and social policy levies embedded in your unit rate add over £150–200/year to your bill.
Read the analysis →UK food prices peaked at 19.1% inflation in 2023 — the highest in 45 years. Prices remain 25–30% above 2021.
Read the analysis →Over 2 million households have faced a remortgage shock since 2022. The average extra cost: £390/month.
Read the analysis →Full-time nursery for one child costs more than annual National Living Wage take-home. For two children: £28,000+.
Read the analysis →Auto-enrolment deducts 5% from your pay automatically. Your employer's 3% comes from the same compensation budget.
Read the analysis →£10,000 in 2020 has lost over £2,700 in real value by 2025. And HMRC collected more tax on the nominal gains.
Read the analysis →Fares rose 4.6% in March 2025. A London season ticket now costs up to £6,500 — paid from post-tax income.
Read the analysis →Energy price cap changes, food inflation data, mortgage rate shifts — tracked every week in plain English.