Families face a fresh price hike this October as the cost of living skyrockets. That is according to one energy consultancy firm which says another £629 could be added to bills.
Cornwall Insights believes families could see their bills shooting up again, meaning they would have doubled in just over a year. It says the invasion of Ukraine has caused volatile wholesale prices with four months to go before the winter price cap is announced.
The expected hike would come as the weather gets colder again. It has led to more calls for the Government to support families struggling with the cost of living.
The prediction, if accurate, would see families paying almost £2,600 a year on energy in winter 2022. This would then drop to £2,040 in summer 2023.
Dr Craig Lowrey, principal consultant at Cornwall Insight said: "The price cap being brought in today is a significant increase from 2021, if Cornwall Insight’s predictions for the Winter 2022-23 cap are realised, households will be set for yet another significant hit to their finances in October. While the government’s £350 worth of support will provide some respite to consumers this time around – all be it not far enough – with the cap almost guaranteed to rise again, the government will need to look at expanding the scale and scope of this support after October at the very least."
Bill Bullen, the boss of Utilita, warned that elderly people and children were at serious risk over the next winter because of a lack of heating. Speaking to the BBC, he said: "We are going to see an extra £500 or £600 added to bills in October, and frankly the chancellor's going to have to fund that entirely for low-income households."
The warnings came as the amount energy suppliers can charge shot up today (April 1). It came on the day when council tax increases come in, along with water bills and vehicle emissions duty going up as well.
However in a move to partially soften the blow, the minimum wage has risen and the Government has brought in measures - such as council tax rebate - to cut the costs. But the Bank of England had previously said families face the biggest increase in living costs since the 1970s.
The increase in energy costs has been the largest since the Ofgem price cap was increased. The cap, set every six months for England. Wales and Scotland, is designed to protect domestic customers from the volatility of wholesale energy prices.
