Household

Rolling coverage of the latest economic and financial newsGood morning, and welcome to our rolling coverage of business, the financial markets and the world economy.New prime minister Andy Burnham has announced this morning that VAT will be cut from household electricity bills, as part of his plan to help with the cost of living.Westminster has not been working for people for too long, with families struggling with the cost of living.That needs to change. I said I wanted to give people breathing space, and that’s what I’m announcing on my second day as prime minister.Fiscal control is the first duty of any chancellor. It is mine. And fiscal credibility is the bedrock for economic stability and for national security, and you heard the prime minister this afternoon say, in this more dangerous world, we will meet our commitments on defence to our international allies…7am BST: ONS Labour market figures and public financesToday: New PM Andy Burnham to announce cost of living measures Continue reading...

Despite promises of successive governments, gap between richest and poorest areas consistent since 1997Britain’s deep regional income divide has barely changed in 30 years despite the promises of successive governments to narrow the gap, according to a report showing the challenge for Andy Burnham.As the prime minister-in-waiting prepares for government, the Resolution Foundation said almost no progress had been made since 1997 to tackle stark divisions in household income, before housing costs are taken into account, between the richest and poorest parts of the country. Continue reading...

• The euro area household saving rate remained stable at 14.3% during the first quarter of 2026, according to data from Eurostat. • This steady rate occurred because both gross disposable income and household consumption increased at an identical pace of 0.8%. • The data is significant as it indicates a balanced relationship between spending and saving across the region despite economic fluctuations.

• The European Central Bank (ECB) released data regarding the financial status of households and non-financial corporations in the euro area for the first quarter of 2026. • A notable increase in household pension entitlements was observed, driven largely by the Netherlands converting pension schemes from defined benefits to defined contributions. • The report provides critical metrics on gross entrepreneurial income and gross non-financial investment, including fixed capital formation and inventory changes.

Hispanic communities have taken economic hit over anti-immigration raids, prompting people to shop online and reuse oilUK politics live – latest updatesThe US cooking oil market is shrinking and unlikely to improve soon because of economic and immigration enforcement pressures on Latino households, the owner of the Mazola brand has said.George Weston, the chief executive of Associated British Foods (ABF), told City analysts that cooking oil sales had suffered as “our heavy use consumer is that Hispanic population who are under financial pressure, who are under pressure from Ice [Immigration and Customs Enforcement] and are feeling a bit miserable”. Continue reading...

• The EU has proposed a new air-conditioning labeling rule designed to help households, particularly in Spain, better compare long-term running costs before purchasing systems. • The initiative aims to prevent consumers from choosing units based solely on low upfront installation quotes, which may hide high electricity consumption or poor performance. • This measure is critical as it addresses issues such as noise levels, heating efficiency during winter, and improper room matching that can increase overall expenses.

• Eurostat released 2025 data on household material welfare, showing that actual individual consumption (AIC) per capita across the 27 EU countries ranges from 73% to 145% of the EU average. • Luxembourg, Ireland, and the Netherlands reported the highest GDP per capita, while Greece, Bulgaria, and Latvia recorded the lowest levels. • The report emphasizes that AIC is a superior indicator of material welfare compared to GDP because it accounts for all goods and services used by households, including those provided by governments and nonprofits.

Thinktank says decoupling electricity from gas prices has also helped shield Spain from hikes caused by Iran warSpanish households save €10 a month on electricity bills because of wind turbines and solar panels installed in the last five years, a report has found.Typical energy bills would be 19% more expensive if electricity costs were still as tightly coupled to gas prices as in 2021, according to Ember, a climate thinktank. It found Spain’s “strategic” expansion of renewables since Russia invaded Ukraine in 2022 has shielded Spanish households from the latest rises in fossil fuel prices caused by the Iran war. Continue reading...

• EU household energy consumption fell to 9.54 million terajoules in 2024, marking a 0.2% decrease from 2023 and the third consecutive year of decline since a 2021 peak of 10.98 million terajoules. • The residential sector accounted for 26.0% of the EU's total final energy consumption in 2024. • Natural gas remained the primary energy source for households at 29.4%, followed by electricity at 26.9% and renewables/biofuels at 22.8%.

Government plan to de-link gas and electricity prices aims to reduce bills for consumers after global surge in pricesHouseholds in England, Scotland and Wales could save nearly £200 a year on their energy bills if the government stepped into the market to act as the sole buyer of electricity, according to a thinktank.The research found that public procurement of electricity, meaning the government would become the “single buyer” of power before it is resold to consumers, could shave billions of pounds from electricity prices. Continue reading...

Australia leads world in residential solar per capita with 22GW installed but commercial and industrial sector has deployed only a quarter of thatGet our breaking news email, free app or daily news podcastAustralia’s revolution in rooftop solar has left behind commercial and industrial buildings where installations have lagged far behind homes, according to new analysis.Australia leads the world in residential solar on per capita terms, with 22GW installed as of last December. But businesses have only installed about a quarter of that – 5.6GW – despite consuming more electricity than households, a report from the Institute for Energy Economics and Financial Analysis (IEEFA) has found. Continue reading...

• A European Central Bank (ECB) working paper reveals that European households continue to show a persistent reluctance to invest in equity markets. • Utilizing data from the ECB's consumer expectations survey, the report highlights a gap between the known long-term wealth-building potential of stocks and actual investor behavior. • This trend is significant as it suggests that a large portion of the population is missing out on financial growth and diversification opportunities.

Australia is pioneering a revolution in home renewables and battery use, proving what is possible with the right policiesThe timing was rich with symbolism. As intense heatwaves pummelled Europe and Asia, and oil markets around the world leapt and sputtered, the two big chimneys of one of Australia’s largest power stations were being demolished. Meanwhile, the Australian energy minister was holding a media conference to hail a fall of up to 10% in the benchmark electricity price in parts of the country.Quietly, and with surprisingly little fanfare from the rest of the world, Australia is pioneering a revolution in home renewables and battery use, proving what is possible with the right policies. The country was already one of the global leaders in domestic solar power, with panels on one in three homes. It also remains, however, a major contributor to the climate crisis through its vast fossil fuel exports.. But it is batteries that are giving Australia a new burst of speed. Continue reading...

Growing fleet of datacentres last year used 22% of the country’s electricityEnergy demand by datacentres in Ireland has added hundreds of euros to household electricity bills in a pattern that could be replicated across Europe, according to a new report.The centres have “drained” €715m (£620m) from the Irish economy and increased household bills by a cumulative average of €360 between 2015 and 2023, said the report commissioned by Friends of the Earth Ireland and Beyond Fossil Fuels. Continue reading...

Under government’s price cap typical gas and electricity bills are forecast to rise by £209 from this summerMinisters face growing calls to cut utility bills as millions of households in Great Britain face energy cost “anxiety,” with gas and electricity costs forecast to rise to almost £1,900 from this summer.The typical dual-fuel bill is expected to climb by nearly 13% under the government’s energy price cap, adding £209 a year to household costs, in a blow to families already hit by rising prices for essentials. Continue reading...

• Poland and Portugal experienced the strongest real household income growth in Europe over the last two years, with Spain leading among major economies. • Specific growth rates included the Netherlands at 2.3%, Portugal at 2%, Denmark at 1.9%, Greece at 1.8%, and Spain at 1.5%. • The OECD attributed Poland's acceleration to employee remuneration offsetting lower social benefits, while Greece's growth was driven by property income and the lowest unemployment rate since 2009.

Dip in credit card spending in April, particularly on travel, suggests Britons preparing for harder times amid Iran war falloutHouseholds cut back on their spending in April at the fastest pace in 18 months, as the conflict in the Middle East provoked fears of another cost of living crisis, a report from one of the UK’s biggest banks has suggested.Barclays, which processes nearly 40% of the UK’s credit and debit card transactions, said its data showed there had been a 0.1% fall in card spending last month compared with a year earlier. This was the first year-on-year fall since November 2024. Continue reading...

PwC survey reports fast fall in consumer confidence with people worried about Iran war’s impact on economy and personal financesBritish households are bracing for a new cost of living crisis, as the impact of the Middle East conflict dampens confidence in the economy and personal finances, a survey has suggested.Consumer confidence in the UK has dipped over the last three months at the fastest rate since June 2022, when inflation in the UK was soaring as a result of Russia’s invasion of Ukraine and the spike in commodity prices. Continue reading...

• Japanese policymakers are leveraging household wealth and assets to support industrial ambitions under a new economic security framework. • Tokyo aims to enhance economic resilience through this innovative financing approach. • The model could inspire other Asian nations to 'look east' for growth strategies amid global uncertainties.

• U.S. gas prices have surged recently, hitting lower-income Americans the hardest amid ongoing economic pressures from geopolitical tensions including the Iran conflict. • The New York Times reports that the price spike exacerbates inequality, with lower-income consumers facing steeper relative burdens on household budgets. • President Trump's claim that the U.S. won the war with Iran has drawn scrutiny, potentially influencing energy markets and public sentiment on fuel costs.

Consumer insight tracker shows 85% are worried about food prices and a majority think the economy will deteriorateThree million UK households are being forced to skip meals as consumers resort to drastic measures to deal with rising costs, according to a Which? report published on Thursday.The conflict in the Middle East and subsequent surge in oil and raw material prices has led to businesses preparing to raise prices, putting more pressure on household finances and hitting consumer confidence. Continue reading...

Brussels will relax state aid rules to allow member countries to offer ‘targeted and temporary’ supportEurope live – latest updatesThe EU will cut electricity taxes and provide consumers with fresh incentives to ditch fuel-burning cars and boilers, the European Commission has announced, as the Iran war energy crisis speeds a shift to a clean economy.The plan, which foresees tweaking rules so that electricity is taxed less than oil and gas, aims to bring down bills while encouraging the move away from polluting devices that prolong reliance on foreign fuels. Continue reading...

Government looks to rush through laws allowing pavement ‘charging gullies’ to help boost EV take-up and cut dependence on fossil fuelsUK to appeal against tax ruling cutting VAT on public EV chargers to 5%Households without off-street parking could soon be able to charge their electric vehicles from home under new government plans to help households cut their need for expensive fossil fuels.The government has promised to pass legislation this summer that will allow motorists to run power cables through a charging “gully” built into the pavement outside their home without the need for planning permission. Continue reading...

Analysis by IFS shows George Osborne’s mortgage schemes launched in 2013 had little effect on social mobilityHigher-income households were the biggest beneficiaries of George Osborne’s Help to Buy mortgage schemes, introduced in the 2010s, according to an analysis by the Institute for Fiscal Studies (IFS) thinktank.Launched by the Conservative-Lib Dem coalition government in 2013, Help to Buy involved two separate schemes aimed at making home ownership more achievable in a period of rapid house price growth. Continue reading...

Weakened economic activity, soaring fuel prices and rising inflation have created a horror scenario, RBA deputy governor saysFollow our Australia news live blog for latest updatesGet our breaking news email, free app or daily news podcastAndrew Hauser, the Reserve Bank of Australia’s deputy governor, says the “stagflationary shock” from the Iran war is a “central banker’s nightmare”, as confidence among Australian households crashed to its lowest level in years.Speaking at an event in New York on Tuesday morning AEST, Hauser said the RBA was “judging the balance” between the damage to the economy from “a big income shock” associated with soaring fuel prices, versus a sharp rise in inflation. Continue reading...

Incentives to absorb surplus wind and solar energy could help balance the grid and lower billsThe UK needs more North Sea gas, not greater reliance on US imports | Nils PratleyHouseholds will be called on to boost their consumption of Great Britain’s record renewable energy this summer to help balance the power grid and lower energy bills.Under the new plans, people could be encouraged to run dishwashers and washing machines or charge up their electric vehicles when there is more wind and solar power than the electricity grid needs. Continue reading...

Resolution Foundation says households face rising costs from higher bills for energy and filling upHigher energy prices as a result of the Iran war are likely to deal a blow to Britons’ living standards, leaving them nearly £500 worse off this year, a thinktank has warned.The Resolution Foundation said households faced rising costs from both higher gas and electricity bills and at the petrol pump. Continue reading...

Catherine King says while peace talks were ‘best chance’ at lowering fuel prices, further help may be included in budgetFollow our Australia news live blog for latest updatesTrack Australia’s fuel prices, service station outages and shipments in chartsGet our breaking news email, free app or daily news podcastThe Albanese government is contemplating further relief for struggling households and businesses in next month’s federal budget, as peace talks continue between the US and Iran amid a fragile ceasefire.The infrastructure minister, Catherine King, said the success of those talks was the “best chance” at bringing down fuel prices. But she warned there would be a “long tail” from the crisis even if the strait of Hormuz – which was still being blocked by Iran and strangling global oil supplies – reopened imminently. Continue reading...