Households all across the UK have been warned to prepare for the annual energy bill increase which could see people pay more than £3,600 this winter.
Energy consultant Cornwall Insight said the average gas and electricity bill in England, Wales and Scotland could reach as high as £3,615 by the new year - this is hundreds of pounds higher than previous predictions. In May, the government announced a support package of £400 to help struggling households with their electricity bills.
However, this was in response to previous predictions that bills would rise to an average of £2,800 in October. Meanwhile, Cornwall Insight predicted last month that an average bill could rise to £3,244 from October and £3,363 from January - but things have now changed.
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Speaking to BBC Breakfast, the company said that the average bill could reach as high as £3,358 from October and £3,615 from January. Cornwall Insight's principle consultant, Craig Lowrey, told the programme: "However, while the rise in forecasts for October and January is a pressing concern, it is not only the level – but the duration – of the rises that makes these new forecasts so devastating,” he told the programme.
“Given the current level of the wholesale price, this level of household energy bills currently shows little sign of abating into 2024.” He added: "While the Government has pledged some support for October’s energy rise, our cap forecast has increased by over £500 since the funding was proposed, and the truth is the £400 pledged will only scratch the surface of this problem.”
Richard Neudegg, director of regulation at Uswitch called for the £400 support package to be increased to £600 while vulnerable households get an even higher rise from £650 to £950. He said: "The Government did the right thing by stepping in with wide-reaching support to try to help ease the blow. However, this support now looks like a severe under-estimation of what consumers need.
“Households need clarity to help them plan for the most expensive winter in living memory.”
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