Britain’s energy regulator Ofgem has announced price cap increases that will raise bills by 54%. 22 million households will be affected by 1st April.
Average annual fuel bills will exceed 10% of income for millions of UK residents. The record rise in energy costs is set to impact consumer spending.
15 million people will officially be living in ‘fuel poverty’ with reduced disposable income. The CBI have warned that businesses will face “high-cost pressures” that could dent economic activity.
The British government is putting support packages in place in response to the crisis. These include a newly announced £200 discount for each household via a loan scheme to be paid back in 5 years, and a £150 council tax rebate for households in Bands A to D, for 80% of UK households.
Local authorities will also be given funding to support households. More economic measures may be announced in the coming weeks.