New research from National Energy Action (NEA) suggests that one in three UK households could fall into fuel poverty if the latest estimates that the average gas and electricity bills could reach £3,245 per year become a reality. Experts at Cornwall Insight recently said bills could rise from a current record of £1,971, to £3,245 in October and may increase even further to £3,364 at the start of next year.
Ofgem will announce the next energy price cap hike near the end of August, however, despite the UK Government’s plans to apply a £400 rebate to all domestic electricity accounts across the country to offset the increase, NEA predicts it won’t be enough to stop 8.2 million households being plunged into fuel poverty - defined as homes spending more than 10% of total income on energy.
NEA chief executive Adam Scorer said: "Current financial support will be inadequate as much of that money will be spent before winter kicks in. Energy bills are already unaffordable for millions, and millions more are set to suffer.”
