California
clear sky
19.3 ° C
21.8 °
17.6 °
87 %
2.1kmh
0 %
Fri
34 °
Sat
33 °
Sun
31 °
Mon
22 °
Tue
16 °
California
clear sky
19.3 ° C
21.8 °
17.6 °
87 %
2.1kmh
0 %
Fri
34 °
Sat
33 °
Sun
31 °
Mon
22 °
Tue
16 °
Friday, May 20, 2022

Energy crisis set to hit former Labour stronghold areas the hardest as bills rocket


Experts fear Labour strongholds won by Tories in the 2019 general election will be hardest hit by energy bills rocketing following the new price cap

Woman putting pot on back burner of gas cooktop
6.3 million housholds could experience fuel stress

The number of families spending at least 10% of their budgets on gas and electricity is set to triple within weeks, a report warns.

Experts believe average bills will rocket to £2,000 after the new price cap comes into effect in April.

Red Wall areas – former Labour strongholds won by the Tories at the 2019 general election – will be hardest hit, analysts fear.

The Resolution Foundation think tank says the proportion of households in England in “fuel stress” – a general indicator of finding energy bills unaffordable – is currently 9%.

It expects the figure to soar to 27% amid predictions the energy price cap could climb by more than 50% this spring.

Ofgem will announce the new price cap level in February.

The figure could equate to 6.3 million households suffering fuel stress.

Levels are set to be highest in the North East and the West Midlands as well as among pensioner households, those in local authority housing and among those in poorly-insulated homes, according to researchers.







Levels are set to be highest in the North East and the West Midlands
(

Image:

PA)

Resolution Foundation senior economist Jonny Marshall said: “Rising gas prices are causing energy bills to soar, and will see the number of families suffering from ‘fuel stress’ to treble to more than six million households this summer.

Fuel stress levels are particularly high among pensioner households, and those in poorly insulated homes – a stark reminder of the need to modernise Britain’s leaky housing stock and curb national dependency on gas for power and heating.”

Ministers are drawing up plans to help hard-up families with the looming energy bill crisis.







The new price cap comes into effect in April
(

Image:

PA)

Labour and the Mirror have called for VAT on energy bills, currently at 5%, to be scrapped.

The Resolution Foundation said lower-income families should be helped via the welfare system.

Mr Marshall said: “The Government can take action by targeting support at lower-income households via benefits or a bigger and broader version of the Warm Homes Discount.

What do you think? Have your say in the comments below.

From coronavirus to Brexit, our daily politics newsletter is there to guide you these turbulent times.

The newsletter is sent out twice daily with the latest UK & world politics news, along with leading opinion and analysis.

You can sign up here.

“They should also temporarily transfer the cost of environmental levies onto general taxation, as well as spreading the cost of supplier failure over three years.

“While not cheap at £7.3billion, this plan is affordable, and by cutting bills by up to £545 would help prevent the upcoming rise in energy bills turning into a cost of living catastrophe for millions of families.”

Last week the Mirror told how pensioners are skipping showers, shunning their ovens and switching off their heating as energy bills rocket.

Age UK revealed the plight of OAPs braced for “astronomical” power price hikes.

A Government spokesman said: “The energy price cap is currently insulating millions of consumers across the UK from high global gas prices.

“We recognise people are facing pressures with the cost of living, which is why we are taking action worth more than £4.2 billion, including the Warm Home Discount and Winter Fuel Payments.”

Read More

Read More

.

Latest news
Related news

LEAVE A REPLY

Please enter your comment!
Please enter your name here