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Mon, 27 Apr 2026

Mon, 27 Apr 2026 'I don't want the children to see how worried we are': UK family finances hit by Iran war

British families tell BBC Panorama how the Iran war is affecting their monthly budgets.
The price of diesel has risen 35% in nearly two months, while petrol is up 19%, according to government data. A typical family car now costs about £14 more to fill with petrol, while a tank of diesel is around £27 more expensive. Households are also facing increased energy bills, predicted to rise by over 12% or roughly £200 in the next quarter, starting in July. This is due to the closure of the Strait of Hormuz, which has severely restricted the supply of oil and gas worldwide. Businesses are also being affected, with higher transport and energy costs potentially leading to increased prices for consumers in the future. Inflation could peak at 3.5% to 4% this year, economists have predicted, making it harder for people to afford their daily lives. Mortgage interest rates are rising "pretty sharply" due to expected increases in interest rates, meaning households looking to re-fix their mortgages face substantially higher costs. Many families, including those with young children and medical conditions requiring frequent hospital visits, are struggling to cope with the increased financial pressure.