Cost of living – breaking news: Energy bills set to hit £6,552 as UK faces ‘catastrophic winter’
Tory MP Kevin Hollinrake says energy crisis will lead to more people ‘on the streets’
Soaring gas prices could drive up the cost of energy bills to £6,552 next year, with inflation set to peak at 18%, according to two forecasts.
Consultancy Auxilione has estimated that gas and electricity bills could reach £6,552 for the average household from April.
Analysts at leading investment bank Citigroup, meanwhile, have predicted that inflation – driven mainly by soaring energy bills – could reach a staggering 18% early next year.
Energy regulator Ofgem will make an announcement on Friday on the latest price cap hike, which will come into effect in October.
The planned fall increase to £3,554 would leave average household bills 80% higher in the colder months when energy consumption soars.
EDF chief executive Philippe Commaret said half of UK households could be in fuel poverty in January due to soaring energy prices as he warned of a “dramatic winter and catastrophic.
Any cost of living assistance available and how to get paid
Former chancellor Rishi Sunak announced a series of new measures after criticizing that the government was not doing enough to deal with the economic difficulties.
My colleague Zoe Tidman see what help is available:
Any cost of living assistance you may be eligible for and how to get the payments
Former Chancellor Rishi Sunak announced a series of new measures after criticizing that the government was not doing enough to deal with the economic difficulties
Matt MatherAugust 23, 2022 11:50 am
Energy price rises to £6,552 – new forecast
A spike in petrol prices on Monday added almost £500 to the expected ceiling for energy prices next year – further compounding the woes of families who would already struggle to keep the heating going.
Experts now expect the energy price cap to be set at £6,552 in April, based on Monday’s gas price.
Prices soared as markets opened on Monday after Russia announced it would carry out maintenance on a key gas pipeline that connects the country to Germany.
“Market jitters seem to be increasing day by day as we get closer to winter delivery, now just five weeks away, and no big positive news on the horizon,” Auxilione said.
“The outages predicted within a week have captured market attention and are fueling concern – as demonstrated by yesterday’s market activity.”
Matt MatherAugust 23, 2022 11:48 am
How to deal with rising prices
Millions of Britons are struggling as the price of everything soars amid rising energy prices and inflation. My colleague Kate Ng turns to financial experts for advice on how to handle it all.
How to cope with the rising cost of living
Millions of Britons are struggling as the price of everything soars amid rising energy prices and inflation. Kate Ng turns to financial experts for advice on how to handle it all
Matt MatherAugust 23, 2022 11:35 am
The cost of living crisis would be worse if Putin was not checked
The cost of living crisis would be even worse if Vladimir Putin’s war in Ukraine went unchecked and his aggression spread to the rest of Europe, a former foreign minister has said.
Sir Malcolm Rifkind, who was Sir John Major’s Foreign Secretary from 1995 to 1997, has been asked how much longer the UK can continue to support Kyiv’s war effort amid rising government bills. exorbitant energy and inflation.
Matt MatherAugust 23, 2022 11:17 am
Cost of living scams: what to look for and how to get help as scammers target relief payments
Questionable text messages, calls and emails are on the rise as the UK’s economic outlook grows increasingly bleak, writes Joe Sommerlad.
Read Joe’s article on scams to watch out for during the cost of living crisis here:
What cost of living scams to watch out for and how to get help
Dodgy texts, calls and emails on the rise as UK economic outlook grows bleaker
Matt MatherAugust 23, 2022 11:00 am
The United Kingdom facing the “economic war”
The UK is facing an “economic war” amid the Russian invasion of Ukraine and rising energy prices, an MP has warned.
John Healy, the shadow defense secretary, spoke to LBC earlier. “There is undoubtedly a component that what we are facing is not just market failure and bad practices by energy companies, but part of the economic war that Russia is waging against Europe” , did he declare.
“It’s no coincidence that in the year before Ukraine was invaded, they halved Europe’s gas supply in those 12 months – driving up prices, pressuring and that’s part of what military specialists would say. [is] a hybrid form of war and aggression.”
Mr Healey added: ‘We are facing Russian aggression which extends to our economy, extends to disinformation which is divisive in our society – which in a way undermines our confidence in our own country. – and we must build our resilience at home and strengthen our defenses abroad.
“That’s why our armed forces are so vital to this country right now.”
Matt MatherAugust 23, 2022 10:46 am
Government not doing enough to avert ‘catastrophic winter’, warns energy boss
Government support for households facing soaring energy bills is “far too low” to prevent a “catastrophic” crisis this winter, an energy boss has warned.
My colleague Andy Gregoire reports:
Government energy plans won’t prevent ‘catastrophic winter’, warns energy boss
Energy company is looking to work with Boris Johnson’s successor ‘as soon as they enter No 10’
Matt MatherAugust 23, 2022 10:30 am
UK expands gas emergency drill
A regular exercise by the energy industry to prepare the UK for the possibility of a gas supply emergency has been expanded amid fears of winter shortages, it has been reported.
The BBC says the annual drill will see potential scenarios – including electricity rationing – take place over four days, instead of the usual two, as energy concerns grow amid Russia’s ongoing war in Ukraine.
Industry insiders linked the drill extension to the severity of energy challenges expected this winter, the BBC said.
Matt MatherAugust 23, 2022 10:12 am
“Catastrophic Winter Ahead”
Households face a “dramatic and catastrophic winter”, a senior energy company official warned before the price cap on bills was raised.
EDF chief executive Philippe Commaret has warned that half of UK households could be in fuel poverty in January due to soaring energy prices.
He said: “We are facing, despite the support the government has already announced, a dramatic and catastrophic winter for our customers,” he told BBC Radio 4. Today.
“In fact, in January, half of UK households could be in fuel poverty. That’s why we want to take action to do everything we can to help our customers.
“So today we are announcing that we will be launching a campaign to reach hundreds of thousands of our customers to provide them with additional support to help them reduce their costs, but also to ensure that they access all available support that is available to them.”
Matt MatherAugust 23, 2022 9:53 a.m.
Price cap topped £6,000 for first time in grim new predictions
The price you pay for your gas and electricity is set to more than triple from an already record high, according to a forecast that will worry millions of families.
Energy prices could soar by up to £6,000 a year for the average household from next April, experts have warned.
Amy Gibbon to the story:
Price cap topped £6,000 for first time in grim new predictions
Bills could reach £4,800 in January and then rise to nearly £6,100 from April, forecasters have warned.
Matt MatherAugust 23, 2022 9:51 a.m.