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Daily Mirror
Daily Mirror
Business
Benedict Tetzlaff-Deas

Brits warned energy bills could be higher than mortgage payments in months

Households have been told that their gas and electricity could soon be more expensive than mortgage repayments as costs continue to soar.

The dire warning from energy consultants came just hours before Ofgem announces the latest price cap for energy bills, which is expected to see prices increase by around 80%.

Experts predict Ofgem will confirm the cap for those on standard tariffs will rocket to £3,554 a year from October 1, a sharp rise from the present average household bill of £2,000.

But this could be just the start of a huge spiral in costs, according to energy consultancy Auxilion, who forecast bills to then double to as much as £6,823 per year by next April.

Energy bills could soon cost households more than mortgage repayments, say experts (PA)

The most recent data on fixed-rate mortgages from trade body UK Finance compiled in December meanwhile found that Brits pay £741 a month on average — meaning homeowners could soon see just a £172 difference in the cost of paying for their home and heating it.

Citizens Advice said this week that quarter of people in the UK will not be able to afford to pay their energy bills in October based on present forecasts, which could rise to a third once prices increase again in January.

Dame Clare Moriarty, chief executive of Citizens Advice, said: "Every single day at Citizens Advice we're already helping people in the most heart-breaking circumstances, trying to scrape together enough to feed their kids and keep the lights on. This will get far, far worse unless the Government acts.

Ofgem is expected to rise its energy bill cap to an £3,554 a year today - and this could double by April, according to forecasts (TOLGA AKMEN/EPA-EFE/REX/Shutterstock)

"It's becoming increasingly clear that skyrocketing prices will swallow up all of the help that has been announced so far."

Following an announcement earlier in the summer, around 1.1 million households on Tax Credits will get the first half of their government £650 cost of living payment from September 2.

Payments are expected to be made by September 7, HM Revenue and Customs (HMRC) confirmed.

There is also £150 for those who claim certain disability benefits and £300 for pensioners in receipt of Winter Fuel Payments.

Every home in England, Scotland and Wales will also receive £400 off their energy bills, spread out over six months from October.

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