Average household ‘to be £480 worse off’ due to increased energy costs

• New research from the Resolution Foundation warns that the average UK household will be £480 worse off this year due to increased energy costs stemming from the US-Iran conflict.
• This financial impact reverses earlier forecasts, with median incomes now projected to fall by 0.6 per cent instead of growing by 0.9 per cent.
• Despite a recent ceasefire between the United States and Iran, the effective closure of the Strait of Hormuz caused a significant spike in oil and natural gas prices.
• Experts predict the energy price cap, currently at £1,641, could rise dramatically after June, potentially increasing by £288 for the average household.
• The Resolution Foundation is urging the government to implement a social tariff for energy bills to support lower-income families, as the damage to household finances is largely considered “already done”.

IN FULL

Higher energy prices will leave UK households £480 worse off this year, experts warn