Households Braced For Further Fuel Bill Rises

Chancellor tells Britain to brace for more rises in energy bills

- Larry Elliott and Phillip Inman

Households hit by Britain’s worsening cost of living crisis should brace themselves for further increases in energy costs later this year, Rishi Sunak warned yesterday, as critics said his £9bn emergency package was insufficient to prevent millions more people struggling with fuel poverty.

Prompted into action by the prospect of the average household paying an extra £700 a year for gas and electricity, the chancellor said he accepted it was a “very difficult time” but that a combination of temporary, repayable discounts and council tax rebates would help soften the blow.

Sunak said that as things stood, the price cap of £1,971 set by the energy regulator, Ofgem, would rise again in the autumn, prompting calls for the government to do more to help those on the lowest incomes.

The Resolution Foundation think tank said even with the government support, the number of people living in fuel stress – households where more than 10% of the budget is spent on energy – would double to 5 million.

“These energy crisis measures are woefully inadequate and will leave those on the lowest incomes and in the least efficient homes in deep peril,” said Adam Scorer, chief executive of the charity National Energy Action. “We needed deep, targeted support for the most vulnerable. We have shallow, broad measures for all. That simply does not work.”