Last week it was announced the price cap would be raised by 80 percent to £3,549 in October, almost triple that of the same time last year. However, the worst is yet to come according to most analysts, as energy bills for the average household are predicted to soar above £6,000 next year, and the rate of inflation – already at a 40-year high of 10.1 percent – may yet double. Although support measures have been announced, with more promised when the new Prime Minister takes office next week, many have accused the Government of a failure to appreciate the scale of the energy crisis.
Announcing an 80 percent hike to the energy price cap last Friday, state regulator Ofgem said: “The market for gas in Winter means that prices could get significantly worse through 2023.”
Energy consultancy Cornwall Insight is now forecasting a price cap of £5,387 in January next year, before surging to £6,616 in April.
Blaming energy bills above all else, in early August the Bank of England predicted inflation would peak at 13.3 percent in October before falling in 2023.
However, US bank Goldman Sachs this week claimed inflation could hit 22.4 percent if gas prices don’t come down.
Amid ever more dire forecasts on the depth of the energy crisis, consumer champion Martin Lewis warned “lives will be lost this winter”.
READ MORE: Eamonn Holmes erupts at Labour as he questions Starmer’s energy plan
The Government has said it is preparing to deliver extra support as soon as a new Prime Minister takes office.
Former Chancellor Rishi Sunak wants to scrap VAT on energy bills and go forward with the means-test lump sum payment of £650.
Tory leadership frontrunner Liz Truss plans to abolish the green levy and reverse the latest National Insurance hike.
This comes as Ovo, the UK’s third largest energy supplier, today published a 10-point plan to address the crisis, including setting up a Fuel Poverty Taskforce, abolishing the standing charge and insulating homes.
So what do YOU think? Should the Government do more to help YOU with energy bills this winter? Vote in our poll and join the debate in the comment section below.