| 13 April 2024, Saturday |

UK cost of living crisis set to intensify as energy bills forecast to soar

Britain’s domestic energy price ceiling is set to climb to more than 4,200 pounds ($5,089) per year in January, up 230 percent from the previous year, according to a key economic forecasting body on Tuesday, exacerbating the country’s cost-of-living issue.

The Bank of England warned last week that the UK was heading for a lengthy recession as high energy costs push inflation to 13%.

Despite the fact that governments around Europe are racing to enhance gas storage and limit use, Britain’s political reaction has been mainly stalled by the race to choose a new prime minister.

According to forecasting firm Cornwall Insight, the cap on a typical family energy contract is anticipated to climb by 82 percent in October, bringing average annual bills for gas and electricity to 3,582 pounds, due to rising wholesale costs and changes in how the quota is determined.

Cornwall expects the quota to climb to 4,266 pounds per year in January, up from its prior prediction of 3,616 pounds.

Following a poll of members of the ruling Conservative party, a spokesman for outgoing leader Boris Johnson said on Monday that it would be up to the new prime minister – either foreign minister Liz Truss or former finance minister Rishi Sunak – to set out a response to soaring bills once they take office on September 5.

The delay comes amid rising pressure from charities, industry organizations, and politicians to move quickly and provide greater assistance to homes.

  • Reuters