The largest increase of energy bills in living memory has come into effect, with the average household now paying out almost £700 more a year for their bills. Charities have warned that 2.5 million more households are set to fall into “fuel stress," where they are spending at least 10% of their total budgets on energy bills.
As a 54% increase to Ofgem’s price cap hits bills, the Resolution Foundation think tank said the number of English households in fuel stress was set to double overnight from 2.5 to five million. Resolution Foundation senior economist Jonathan Marshall said: “Today’s energy price cap rise will see the number of households experiencing fuel stress double to five million.
"Another increase in energy bills this autumn hastens the need for more immediate support, as well as a clear, long-term strategy for improving home insulation, ramping up renewable and nuclear electricity generation, and reforming energy markets so that families’ energy bills are less dependent on global gas prices.”
