Millions of British families are bracing for a devastating financial blow as new projections indicate energy bills are set to surge by hundreds of pounds this autumn.
According to devastating new analysis from the Resolution Foundation, approximately 7.9 million households across the UK will see their annual energy costs increase by an average of £560 when the energy price cap is adjusted in October.
The Perfect Storm Hitting Household Budgets
This alarming increase stems from a combination of factors creating a perfect storm for consumers:
- The withdrawal of crucial government support that previously capped typical bills at £2,500
- Rising wholesale energy prices driving up the Ofgem price cap
- The ongoing cost of living crisis affecting essential spending
Who Will Be Hit Hardest?
The research identifies that lower-income families will bear the brunt of this increase, with the poorest tenth of households facing an energy bill rise equivalent to 8.3% of their total consumption budget.
Jonathan Marshall, Senior Economist at the Resolution Foundation, delivered a stark warning: "The combination of higher energy bills and the withdrawal of cost-of-living payments will place significant pressure on low and middle-income families this winter."
A Glimmer of Hope Amid the Gloom
While the immediate outlook appears bleak, there is some positive news on the horizon. Energy consultancy Auxilione projects that prices might begin to fall again in January 2024, potentially bringing some relief to strained household budgets in the new year.
However, for millions of families facing a difficult winter, the autumn price hike represents yet another challenge in the ongoing cost of living crisis that shows no signs of abating.
