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Business
Neil Shaw & Sam Volpe

Energy price rises will mean 1 in 4 of us can't afford bills by October

On the day which has seen the biggest rise in domestic energy bills in living memory hit, charities have warned 2.5 million more households across the country are set to fall into "fuel stress".

Energy supplier websites were unresponsive to customers in the hours before the jump in prices came into effect. With a 54% increase to Ofgem’s price cap meaning bills have skyrocketed - the Resolution Foundation think tank said the number of English households in fuel stress is likely to have doubled overnight from 2.5 to five million. "Fuel stress" is defined as families spending more 10% or more of their income on energy.

The think tank's 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."

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