What's happened
As of October 1, 2024, the average household energy bill in the UK has increased by £149 annually, reaching £1,717. This rise, driven by international market pressures, coincides with the withdrawal of winter fuel payments for many pensioners, raising concerns about affordability during the colder months.
What's behind the headline?
Impact on Households
- Increased Financial Burden: The average rise of £149 will strain budgets, especially for low-income families and pensioners.
- Fuel Poverty: Approximately six million households are expected to fall into fuel poverty, needing to spend over 10% of their income on heating.
Government Response
- Withdrawal of Support: The elimination of winter fuel payments for many pensioners exacerbates the situation, leaving about 10 million without this financial aid.
- Calls for Action: Charities urge the government to enhance support measures, particularly for vulnerable populations.
Future Projections
- Potential Further Increases: Experts predict that energy prices may rise again in January, driven by ongoing geopolitical instability.
- Consumer Advice: Ofgem encourages consumers to explore fixed-rate tariffs to mitigate future price hikes.
What the papers say
According to The Independent, the energy price cap has risen to £1,717, marking a significant increase just as winter approaches. Ofgem's chief executive, Jonathan Brearley, acknowledged the challenges this poses for households, urging those struggling to seek available benefits. Meanwhile, BBC News highlights that the average bill will increase by about £12 monthly, with many households already in debt to energy suppliers. The Guardian reports that nearly half of British adults plan to ration their energy use this winter, reflecting widespread concern over affordability. Charities like National Energy Action emphasize the urgent need for government intervention to support vulnerable households facing rising costs.
How we got here
The increase in the energy price cap by Ofgem is attributed to rising wholesale prices influenced by geopolitical tensions and extreme weather. This change comes as households prepare for winter, with many already facing financial strain from previous cost-of-living increases.
Go deeper
- How will this affect low-income households?
- What can consumers do to manage rising energy costs?
- Are there any government plans to address this issue?
Common question
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How Will Rising Energy Bills Affect UK Households This Winter?
As energy prices soar, many UK households are bracing for a challenging winter. With the average energy bill set to increase significantly, understanding the implications and available support is crucial for managing household budgets. Below are some common questions and answers regarding the impact of rising energy bills and how to cope with the changes.
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