Households Face Further Energy Bill Hikes Amid Global Shocks
Ofgem set to announce new price cap as government plans VAT cut on electricity bills from October.
Image: Eddie Pollard / AI
Callum Smith
Typical household energy bills are projected to increase by another 4 per cent, reaching an equivalent of £1,729 annually.
The Prime Minister admitted he "won't be unrealistic" about the state of the public finances, as further questions arise over the funding of a digital ID scheme.
A government spokesman affirmed, "Tackling the cost of living remains a key priority for this Government and we know families will be worried by the prospect of higher energy bills this winter."
The government has also provided extra support for six million families through the £150 warm home discount. The spokesman added, "We’re acting to give consumers breathing space with the cost of living – cutting VAT on energy bills, ensuring around six million households get the £150 warm home discount this winter, and making millions of homes cheaper to run through our warm homes plan."
Tackling the cost of living remains a key priority for this Government and we know families will be worried by the prospect of higher energy bills this winter.
Energy firms have banked more than £6 billion in UK profits this year alone; household energy prices are set to increase further.
The Middle East conflict has affected wholesale energy prices, while heatwaves across Europe have increased gas demand for power generation.
A government spokesman stated, "Alongside our efforts to support rapid de-escalation in the Middle East, we will do everything we can to shield consumers from global energy shocks and bring down bills for good."
Miatta Fahnbulleh claims that help might only go to 'vulnerable' households. Dhara Vyas commented that "Too many households continue to feel the strain of high energy bills."
Vyas further argued, "Instead of relying on stop-gap, ad hoc or emergency measures, we need a better, targeted and more permanent way to give people confidence that they’ll get help when they most need it." She concluded that "The current arrangements fail to provide the help needed and work out more costly."