Energy bills rose by more than £220 a year under the Labour Party government’s price cap from Wednesday, affecting 13 million customers of British Gas, EDF, EON, Ovo, and Octopus. The new cap on gas and electricity rates rises to the equivalent of £1,862 a year, pushing millions of households into fuel poverty.
Fuel Poverty Numbers Surge
According to the End Fuel Poverty Coalition, the number of households forced to spend more than 10% of their income on energy bills will increase to 13.5 million from almost 11.3 million in April. The coalition warned that almost 5.5 million homes face energy bills of about 20% of their income, up sharply from 4.3 million in April this year.
Simon Francis, coordinator of the End Fuel Poverty Coalition, said: “These figures show the reality behind the headline price cap figure: a growing number of households are spending an unsustainable share of their income just to heat their homes in winter and keep them cool in summer.”
Summer Energy Costs Wipe Out Savings
Francis added: “With energy costs rising over the summer, any chance households had to reduce energy debts or build up reserves before the winter heating season will be wiped out.”
Sharon Graham, Unite’s general secretary, said: “The increase in the energy cap is another kick in the teeth for workers and families who were already struggling with ever rising bills and the cost of living crisis. The UK has among the highest energy bills in Europe, they should be going down not up.”
Calls for Reform
Francis called for structural changes: “If it is to be Andy Burnham as the next PM with his vision of a rewired Britain, then new ministers must also rewire how energy bills are set. Plans to devolve control of energy will count for nothing unless they are accompanied by a permanent social tariff, an end to energy debt, reduction of electricity costs and a credible plan to break the link between gas and electricity prices.”
Martin McCluskey, the minister for energy consumers, said: “We know families are deeply concerned about rising energy bills because of a war we did not choose, and we are determined to fight their corner to tackle energy affordability.” McCluskey said it would continue to monitor the situation before the winter “and plan for all contingencies, while doubling down on our mission for clean power to bring down bills for good.”
