The biggest jump in domestic energy bills in living memory has come into effect as charities warn that 2.5 million more households are set to fall into “fuel stress” and supplier websites remained unresponsive to customers. As a 54% increase to Ofgem’s price cap hit bills, the Resolution Foundation think tank said the number of English households in fuel stress – those spending at least 10% of their total budgets on energy bills – 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.”
Citizens Advice said around five million people would be unable to pay their energy bills from April, even accounting for the support the Government has already announced. It warned this number would almost triple to one in four people in the UK – more than 14 million – if the price cap rises again in October based on current predictions.
