Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

A third of Brits face poverty with energy bills set to hit $5,000

A third of Brits face poverty with energy bills set to hit $5,000

Nearly one third of households in the United Kingdom will face poverty this winter after paying energy bills that are set to soar again in January, campaigners say.

About 10.5 million households will be in fuel poverty for the first three months of next year, according to estimates from the End Fuel Poverty Coalition (EFPC) published on Tuesday — meaning that their income after paying for energy will fall below the poverty line.

The UK government defines poverty as household income of less than 60% of the UK median, which stood at £31,000 ($37,500) in 2021, according to official statistics.

The predictions are based on new estimates from research firm Cornwall Insight, also published Tuesday, which show that the average household energy bill is expected to hit £3,582 ($4,335) a year from October, and £4,266 ($5,163) from January — equating to about £355 ($430) a month.

January's forecast represents a 116% increase in energy bills from current levels. As fuel prices surge, estimates are having trouble keeping pace. Just last week, Cornwall Insight predicted January's prices would rise by 83% from current levels.

The research firm said it had revised its figures because of a jump in wholesale prices and a change in the way the UK regulator calculates its price cap. But there could be relief on the horizon: Cornwall Insight expects bills to start falling in the second half of 2023.

Fuel bills started rising last year as a global natural gas supply crunch pushed wholesale prices up to record levels. Russia's invasion of Ukraine in late February has only exacerbated the situation.

The average UK household bill has already risen 54% this year, exacerbating a cost-of-living crisis that has forced many Britons to choose between "heating and eating."

In May, the government announced a £15 billion ($18 billion) package of support — including a £400 ($484) payment to 29 million households from October — to ease the burden of energy bills.

But Simon Francis, coordinator for the EFPC, said the latest price estimates meant the current level of government support amounted to a "drop in the ocean."

Craig Lowrey, a principal consultant at Cornwall Insight, said in a Tuesday press release that if "£400 was not enough to make a dent in the impact of [the company's] previous forecast, it most certainly is not enough now."

Liz Truss, the UK's foreign minister and current frontrunner to replace Boris Johnson as prime minister next month, has proposed cutting taxes to help people struggling with their bills, rather than direct help. Her rival, former finance minister Rishi Sunak, has said more support will be needed.

Meanwhile, the CBI — the country's top business organization — has urged Johnson to bring the leadership candidates together to agree on a way to support households and businesses with their energy bills so that measures can be announced as soon as the October price cap is set on August 26. The new prime minister is not expected to be elected until September 5.

Newsletter

Related Articles

0:00
0:00
Close
Unelected PM of the UK holds an emergency meeting because a candidate got voted in… which he says is a threat to democracy…
Farmers break through police barriers in Brussels.
Ukraine Arrests Father-Son Duo In Lockbit Cybercrime Bust
US Offers $15 Million For Info On Leaders Of Cybercrime Group Lockbit
Apple warns against drying iPhones with rice
Alexei Navalny: UK sanctions Russian prison chiefs after activist's death
German economy is in 'troubled waters' - ministry
In a recent High Court hearing, the U.S. argued that Julian Assange endangered lives by releasing classified information.
Tucker Carlson says Boris Johnson wants "a million dollars, in Bitcoin or cash, from Tucker Carlson to talk about Ukraine.
Russia is rebuilding capacity to destabilize European countries, new UK report warns
EU Commission wants anti-drone defenses at Brussels HQ
Von der Leyen’s 2nd-term pitch: More military might, less climate talk
EU Investigates TikTok for Child Safety Concerns
EU Launches Probe Into TikTok Over Child Protection Under Digital Content Law
EU and UK Announce Joint Effort on Migration
Ministers Confirm Proposal to Prohibit Mobile Phone Usage in English Schools
Avdiivka - Symbol Of Ukrainian Resistance Now In Control Of Russian Troops
"Historic Step": Zelensky Signs Security Pact With Germany
"Historic Step": Zelensky Signs Security Pact With Germany
Russian opposition leader Alexey Navalny has died at the Arctic prison colony
Tucker Carlson grocery shopping in Russia. This is so interesting.
France and Germany Struggle to Align on European Defense Strategy
‘A lot higher than we expected’: Russian arms production worries Europe’s war planners
Greece Legalizes Same-Sex Marriage and Adoption Rights
Russia "Very Close" To Creating Cancer Vaccines, Says Vladimir Putin
Hungarian Foreign Minister: Europeans will lose Europe, the Union's policy must change drastically
Microsoft says it caught hackers from China, Russia and Iran using its AI tools
US Rejects Putin's Ceasefire Offer in Ukraine
The Dangers of Wildfire Smoke and Self-Protection Strategies
A Londoner has been arrested for expressing his Christian beliefs.
Chinese Women Favor AI Boyfriends Over Humans
Greece must address role in migrant vessel disaster that killed 600: Amnesty
Google pledges 25 million euros to boost AI skills in Europe
Hungarian President Katalin Novák Steps Down Amid Pardon Controversy
Activist crashes Hillary Clinton's speech, calls her a 'war criminal.'
In El Salvador, the 'Trump of Latin America' stuns the world with a speech slamming woke policing after winning a landslide election
Trudeau reacts to Putin's mention of Canadian Parliament applauding a former Ukrainian Nazi in his interview with Tucker Carlson.
The Spanish police blocked the farmers protest. So the farmers went out and moved the police car out of the way.
Volodymyr Zelenskiy fires top Ukraine army commander
Tucker Carlson's interview with Vladimir Putin raises EU concerns
Finnish Airline, Finnair, is voluntarily weighing passengers to better estimate flight cargo weight
Russia's Economy Expands by 3.6% Due to Increased Military Spending
Ukraine MPs Vote To Permit Use Of Dead Soldiers' Sperm
German Princess Becomes First Aristocrat To Pose Naked On Playboy Cover
UK’s King Charles III diagnosed with cancer
EU's Ursula von der Leyen Confronts Farmer Protests Amid Land Policy Debates
Distinguishing Between Harmful AI Media and Positive AI-Generated Content: A Crucial Challenge for the EU
Tucker Carlson explains why he interviewed Putin
Dutch farmers are still protesting in the Netherlands against the government, following the World Economic Forum's call for 'owning nothing.'
Hungarian Prime Minister Viktor Orbán stands up for European farmers and says, 'Brussels is suffocating European farmers.
×