Why we should all get used to high household energy bills
The government is under pressure to support billpayers when domestic energy prices predicted to rise further.
Energy bill hikes have reignited worry and urgency among families and governments. Bills are set to rise by nearly 4% in October, with an additional 9% jump forecasted by winter. EDF predicts bills will remain high for at least the next decade. The typical household's dual-fuel bill has surged 70% since 2021, costing around £600 more annually.
Unpaid energy debt has reached a record £6bn, with the average in debt owing more than their annual bill. Ofgem proposes a debt relief scheme, but its funding remains uncertain. While some have reduced energy use, the heatwave has depleted Europe's energy reserves, intensifying price pressures. The government aims to reduce reliance on gas, but short-term relief measures like VAT cuts on electricity bills may not fully alleviate the burden.
The new chancellor, John Healey, faces limited options in the public finances to address the ongoing issue.
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