Millions of households are likely to see a further increase in the energy price cap later this year, Ofgem has warned. The energy regulator's chief Jonathan Brearley has said people in the UK should expect another increase to the cap as the cost-of-living crisis in the UK deepens and the region feels the financial impact of the Ukraine war.
According to the Mirror, Mr Brearley said while speaking in Glasgow: "Gas markets remain in a febrile state since the Russian invasion. "Prices fluctuated from nearly 16 times the average price last winter at its highest to around four times what we'd usually see. The market remains highly volatile and as a result we do expect further price increases later this year."
The news will come as a further blow for millions of people in the UK following the 54% rise in the energy price cap back in April, an increase of around £693. It saw a typical bill pushed up to around £1,971 a year according to MoneySavingExpert. Read more: The average British person spends nearly £4,500 a year on food, study says
Analysts Cornwall Insight had already predicted that a typical household will see their annual energy bill rise by £600 in October. That would take the typical household's gas and electricity bills to £2,595.
Mr Brearley continued: "Many of you in the room know the impact the gas crisis has on the sector, but most importantly it is putting huge strain on the customers we serve. I talk to customers on a regular basis, and I know how tough rising energy prices are for many households and businesses. For some, not being able to afford rising energy bills is literally a matter of life and death."
Around 1.5million UK households will struggle to pay food and energy bills amid a deepening cost-of-living crisis that will plunge Britain into a recession, a leading think tank has also warned on Wednesday. Soaring inflation compounded by the war in Ukraine will see many families hit with food and energy bills greater than their disposable income, the National Institute of Economic and Social Research (Niesr) estimates.
It has called for the government to offer emergency support as it predicted that more than 250,000 households will "slide into destitution" next year, with the total number in extreme poverty to hit around one million unless urgent action is taken. Niesr said Chancellor Rishi Sunak should hike universal credit payments by £25 per week and give a one-off £250 cash payout to the UK's 11.3 million lower-income households.
But on Wednesday the Prime Minister said the government cannot "completely shield" people from the rising cost of living, as he came under fire for not using the Queen's Speech to promise more support. Boris Johnson used the Queen's Speech, delivered for the first time by the Prince of Wales, to set out plans for changes to create a "high-wage, high-skill" economy, claiming the UK Government's programme would "build the foundations for decades of prosperity".
But charities, campaigners and opposition politicians criticised the lack of any short-term measures to help people faced with soaring costs in their day-to-day lives. The prime minister hinted at future help, using the "fiscal firepower" of the government.
"We will continue to use all our ingenuity and compassion for as long as it takes," he told MPs. "The Chancellor and I will be saying more about this in the days to come."
Boris Johnson, in his response to the Queen's Speech, warned there were limits on how much public money he was prepared to commit to addressing a global economic crisis. But he told MPs: "We will continue to use all our ingenuity and compassion for as long as it takes. The Chancellor and I will be saying more about this in the days to come."
