Pocket money... you need an 8.7% pay rise just to stand still

■ Energy companies have been “inundated with complaints since the gas crisis led to the failure of firms and a dramatic hike in bills”, says Will Kirkman in The Daily Telegraph.

The number of complaints jumped by 35% between August and December 2021, according to consumer complaints specialist Resolver. During that same period annual household bills went up by an average of at least £139 as the energy price cap rose, while, millions of people were moved to new suppliers after several energy firms collapsed as prices surged.

The majority of complaints were related to price increases and billing issues.

■ If you want to cut your household bills it pays to pester your broadband, TV or mobile provider, consumer group Which has found. In a survey, Which found that 46% of those who haggled with their provider when their contract ended saved an average of £85 on broadband; £128 on broadband and TV packages; and £35 on mobile bills. “Customers who make a nuisance of themselves by haggling with their provider can save nearly £130 a year, but discounts could top £200 for those willing to switch away.”

So “if you are not happy with your provider, or are looking to avoid a costly price hike, or your service is just not good enough, shop around and consider switching.” Yet even if you are content with your existing provider, it still pays to get on the phone and get a better deal. “Don’t be afraid to haggle when your contract ends, as it is easier than you might think and you could save a lot of money,” says Lisa Barber of Which.

■ A combination of the rising cost of living and tax increases means you’ll need an 8.7% pay rise this year simply to tread water, according to The Sunday Telegraph. As noted above, UK inflation, as measured by the consumer price index (CPI), hit an annual rate of 5.4% in December. Then on top of that, in April National Insurance rates will go up by 1.25% while income-tax thresholds remain frozen, so more people will end up paying higher-rate income tax (not to mention potentially suffering the child benefit taper, which starts when annual earnings rise above £50,000).

Telegraph Money analysis shows that from April a worker on £50,000 will take home £37,198 after tax, £464 less than in the current tax year, meaning such workers need “a pre-tax salary of £54,350 from April to enjoy the same take-home pay”. But negotiating will be an

“uphill battle”. Insurer WTW notes that pay-rise budgets for British firms have grown by a third this year, but this has yet to translate into “inflation-beating wage growth”.