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Harry Sekulich, with wires

Millions of Britons at risk of poverty, cold-home deaths as energy prices soar

Paul White talks to his wife, Dawn, while she undergoes dialysis treatment at their home in Essex. Spiralling energy costs could cause major problems for those who rely on home dialysis machines. (Reuters: Hannah McKay)

A British charity is warning millions of people in the UK are at risk of poverty and death, after the national energy regulator announced power bills in the United Kingdom were about to jump 80 per cent for consumers.

Ofgem announced the energy price cap will increase to 3,549 pounds ($6,017) a year by October, up from the current figure of 1,971 pounds ($3,348) and almost tripling last year's average of 1,277 pounds ($2,164).

National Energy Action chief executive Adam Scorer told Reuters that with temperatures cooling and winter only months away, cold homes could lead to more deaths.

"10,000 people die every year in the UK directly because of a cold home. That number is going to skyrocket," Mr Scorer said.

"We're going to have another cold homes epidemic across the UK. It has a cost in mental health, in ill health."

Mr Scorer warned the new price rise was a "disaster" that could plunge 9 million households into fuel poverty, which occurs when a household spends more than 10 per cent of its income on power bills.

"It is simply unaffordable for millions of people in Britain, and it's already caused huge amounts of privation, debt, anxiety and grief, and it will only get worse as we head into winter," he said.

The charity reported that households struggled through the summer's price hikes by avoiding cooking or cleaning.

Jennifer Jones sorts her bills at her small flat in London. Like millions of others, she is struggling to cope as energy prices skyrocket during Britain's worst cost-of-living crisis in a generation. (AP Photo: Frank Augstein)

Analysis from energy consultancy Cornwell Insights shows that the rising trajectory for household energy bills is going to gain pace.

It forecasts bills could reach 6,616 pounds ($11,212) a year by April next year, before falling to 5,897 pounds ($9,999) a year in July.

The price spikes are increasing pressure on already stretched household budgets.

They are also cited as a primary factor contributing to rising inflation, which reached 10.1 per cent in the year to July, marking the fastest pace since 1982.

Next PM called upon to stem crisis

Ofgem's chief executive, Jonathon Brearley, said the next UK prime minister needed to take immediate action once in office next month.

"It's clear the new prime minister will need to act further to tackle the impact of the price rises that are coming in October and next year," Mr Brearley said.

The two Conservative Party candidates vying for the leadership, Liz Truss and Rishi Sunak, are travelling the country campaigning until September 5, when party members will select the next prime minister.

A spokesperson for Ms Truss, who is the frontrunner to replace Boris Johnson, said she would focus on supporting families and businesses through the cost-of-living crisis.

"Today's announcement will cause grave concern to many people across the UK who will be worried about paying their bills," the spokesperson said.

"As prime minister, Liz would ensure people get the support needed to get through these tough times."

Rishi Sunak and Liz Truss at the BBC Conservative Party leadership debate on July 25. (Reuters: Jacob King)

Labour's Shadow Chancellor of the Exchequer, Rachel Reeves, criticised the pair for not laying out clear plans to tame soaring energy prices.

"The two people who want to be the next leader of the Conservative [Party] have been going round the country for the last few weeks setting out their policies on almost everything, apart from the biggest issue facing our country right now, which is these astronomical increases in gas and electricity prices," Ms Reeves told the BBC.

Labour pledged to freeze prices for six months using North Sea oil and gas companies' profits.

The Conservative government is facing increasing pressure to place more downward pressure on soaring household energy bills.

Rishi Sunak, as the former Chancellor of the Exchequer, introduced a support package earmarked at 15 billion pounds ($25.41 billion) in May, partially funded by a windfall tax on oil and gas companies.

The measures included 400 pounds ($678) credit for every household to help with their energy bills in October, with additional financial assistance for pensioners and low-income households.

The current chancellor, Nadhim Zahawi, said more support is on the way for consumers and businesses struggling with the soaring cost of energy.

Russia's invasion of Ukraine, coupled with lingering supply-chain issues caused by the COVID-19 pandemic, has spurred rising energy costs globally.

The UK has introduced tranches of sanctions against Moscow since Russian troops crossed the border into Ukrainian cities, including an import freeze on gas, and a planned phase-out of oil.

Official government figures showed Britain imported no fuel from Russia in June for the first time since records began 25 years ago.

ABC/Reuters/BBC

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