Category Archives: Household bills

Soaring costs could strip ‘basic dignity’ from millions in UK

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Annual income survey finds national minimum wage will often fail to cover even a ‘no frills’ lifestyle

Soaring inflation and energy costs will leave millions of people on low incomes thousands of pounds short of what the public say is the minimum amount needed to live with basic dignity in the UK this winter, according to an annual survey.

The annual Minimum Income Standard study is based on intensive deliberations by groups of socially representative UK residents, who agreed what a normal, no-frills lifestyle would cost and look like in 2022, taking into account housing, food, clothing, household goods, transport and social participation.

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No one should be cut off if they can’t afford energy bills, says Zahawi

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UK chancellor says more help will be provided to heat homes this winter but does not explain how

The chancellor, Nadhim Zahawi, has said households should not be cut off if they cannot afford their energy bills, as the Treasury examines a range of options to help consumers cope with the cost of living crisis.

Zahawi promised that the government would expand on the £37bn package of aid announced earlier this year to help households tackle soaring energy costs. He told Sky News: “No one should be cut off because they can’t afford their bills.

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Energy price inflation: how the UK and EU could fight it

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What can be done about rising prices – and would nationalising gas and electricity firms help?

Governments across Europe have been funding relief measures to help people with energy and petrol bills. The UK announced a £15bn package in May, largely in the form of cash payments to households, while EU member states are estimated to have spent €280bn (£243m) over the past year on everything from subsidies and price caps to one-off payments. But bills for households and businesses are reaching unsustainable levels, with further increases expected next year, sharpening the debate over whether ministers should be intervening directly in energy markets to help bring prices down.

As Russia threatens to further reduce gas supplies, politicians in Italy, Spain, Greece and the Czech Republic are among those pushing for coordinated action. The European Commission president, Ursula von der Leyen, said on Monday Brussels was considering measures to be adopted by the 27 member states. What are the options?

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Food banks warn surge in demand will prevent feeding hungriest this winter

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Exclusive: Nearly 70% of providers say they may need to turn people away or shrink the size of emergency rations

Food banks across Britain have warned of a “completely unsustainable” surge in demand that will prevent them feeding the hungriest families this winter.

Organisations representing 169 food banks told the Guardian the number of people seeking emergency help had already grown “dramatically” and predicted “bleak and disturbing” weeks ahead.

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UK food price inflation hits highest level since global financial crash

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Prices in shops rose by 5.1% in August, British Retail Consortium finds, as the war in Ukraine pushes up prices up for farmers

The rapidly rising price of food including milk, margarine and crisps pushed August shop price inflation to the highest levels since 2008 as the war in Ukraine raised costs for farmers.

Prices in shops rose by 5.1%, a big increase from 4.4% in July, as food producers passed on increases in the cost of fertiliser, wheat and vegetable oils, large amounts of which are produced in Ukraine and Russia, according to data from the British Retail Consortium (BRC) and market research firm NielsenIQ.

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Gypsies and Travellers fear missing out on energy bills support

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Government urged to ensure thousands living in park homes in Great Britain receive £400 payments

Gypsy and Traveller groups are calling on the government to ensure thousands of households living in park homes are not excluded from its energy bills support scheme this winter as bills soar.

The scheme will pay out a total of £400 to all households in Great Britain with a domestic electricity connection between October and March, with monthly payments administered by their energy supplier.

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Liz Truss ponders VAT cut of 5 percentage points amid cost of living crisis

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Tory leadership frontrunner understood to have discussed move, with final decision coming after contest ends

Liz Truss is considering whether to reduce VAT by five percentage points across the board, which could save families £1,300 a year, it was reported.

The foreign secretary is understood to have discussed the move with her advisers but no final decisions will be taken until the Conservative leadership contest concludes on 5 September, according to the Sunday Telegraph.

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People on £45,000 could struggle with bills, says chancellor

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Nadhim Zahawi says energy price hike will be ‘really hard’ for middle-earners, as well as society’s most vulnerable

People earning around £45,000 a year, as well as those on benefits, could need government help to pay their energy bills this winter, the chancellor has said.

Britain’s energy industry regulator, Ofgem, on Friday confirmed an 80% rise in the consumer price cap from October that will take a typical household’s gas and electricity bill from £1,971 to £3,549 a year.

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Liz Truss taking risk by not announcing energy plan – if she has one

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Tory MPs are jittery while Keir Starmer is gaining traction with his plan for a price freeze

It is the biggest energy crisis for decades, with experts warning that people may freeze to death this winter and many will turn off their heating altogether.

But Liz Truss’s leadership campaign has barely reacted to the news that bills will have almost tripled in a year, beyond the vague promise of help to come.

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Rising energy bills put millions of UK households at risk of winter catastrophe

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Experts say 80% price cap increase will plunge people into destitution and cause avoidable deaths

Millions of households are bracing for a winter catastrophe of rising energy bills that experts say will plunge people into destitution and cause an increase in avoidable deaths without urgent government support.

After Britain’s energy industry regulator confirmed an 80% rise in the consumer price cap from October that will take a typical household’s gas and electricity bill to £3,549 a year, there were stark warnings about its potentially devastating effects.

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Truss and Sunak clash on energy costs at penultimate Tory hustings

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Truss remained loath to ‘bung money’ at those struggling to afford spiralling bills, Sunak said millions may be forced into destitution

Liz Truss has doubled down on her reluctance to “bung more money” at those who will struggle to afford spiralling energy costs this winter while Rishi Sunak said millions may be forced into destitution without extra support, as the pair clashed at the penultimate hustings of the Conservative leadership race.

With energy regulator Ofgem expected to raise the price cap to £3,500 a year from October for the average dual-fuel tariff, Truss warned the issue of spiralling fuel costs was not a short-term one. “If people think this problem is going to be over in six months they are not right. This is a long term problem,” she told the audience in Norfolk.

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British Gas to donate 10% of profits to struggling customers

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Company’s owner, Centrica, says extra support will begin in autumn and last for the ‘duration of the energy crisis’

British Gas has announced it will donate 10% of its profits to help its poorer customers manage rising gas and electricity bills for the “duration of the energy crisis”.

Ahead of an expected rise in the price cap on energy on Friday, the company’s owner, Centrica, said it would donate £12m this autumn into an existing support fund. Grants of £250 to £750 would be given to poorer customers, and the pledge to donate 10% of profits every six months would last for the duration of the energy crisis “backdated to the start of 2022”, it added.

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Economists demand urgent action on energy bills to avert ‘catastrophe’

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Millions of vulnerable people will be harmed without radical policies to ease cost of living crisis, say experts

Physical and financial harm will be caused to millions of vulnerable families unless the government takes action to avert a winter catastrophe by cutting energy bills, leading economists have warned.

In the run-up to the announcement of the new energy price cap tomorrow the Resolution Foundation thinktank said radical policies such as price freezes, solidarity taxes or lower social tariffs were needed to prevent the cost of living crisis worsening.

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Next PM could face £23bn autumn spend to cover £900 rise in energy bills

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Energy prices have soared above prediction and subsidies will require significant further spending

Ministers could face an additional £23bn price tag for covering extra household energy costs of £900 this autumn, rising to £90bn next year, a new paper by the Institute for Government has found.

The paper, looking at the options for Liz Truss or Rishi Sunak in No 10, also warned the government should plan for prolonged rises in energy bills by going a lot further in making public appeals to use less gas – for example by informing consumers about the cost savings from turning down thermostats – and in committing to building more energy efficient homes to help protect consumers.

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UK customers face ‘catastrophic winter’ as energy costs soar, says EDF retail boss

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Half of UK households could be in fuel poverty by January unless government steps in, says managing director for customers

The UK faces a “dramatic and catastrophic winter for customers” as energy prices soar, according to a stark warning from the head of EDF Energy’s retail business.

Philippe Commaret, the energy firm’s managing director for customers, called for extra government intervention, including help for households to insulate their homes and a VAT cut for small businesses as prices jump to record levels.

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Two-thirds of UK families could be in fuel poverty by January, research finds

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Estimated 45m people will struggle to pay energy bills this winter with predicted rises in price cap

Two-thirds of all UK households will be trapped in fuel poverty by January with planned government support leaving even middle-income households struggling to pay their bills, according to research.

It shows 18 million families, the equivalent of 45 million people, will be left trying to make ends meet after further predicted rises in the energy price cap in October and January.

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Labour to push energy price cap policy in campaign blitz

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Party aims to get out message on plan to tackle cost of living before new Conservative PM enters No 10

Labour is planning a campaigning blitz in order to take ownership of its new energy price cap policy in case the next Tory leader bows to pressure and cancels the 80% rise expected in October.

Keir Starmer has vowed that his party “wouldn’t let people pay a penny more” on their gas and electricity bills this winter, proposing freezing the price cap at current levels and preventing the average household bill from reaching £3,600.

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Labour announces plan to freeze energy price cap with reinforced windfall tax

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Keir Starmer says people won’t pay ‘a penny more’ and that plan would reduce inflation

Keir Starmer has put a beefed-up £8bn windfall tax on energy company profits at the heart of a new plan to stop people having to pay “a penny more” on fuel bills this winter.

The Labour leader confirmed that under his plan the energy price cap would be frozen at the current level, meaning that an expected 80% rise in October – taking an average household bill to about £3,600 – would not go ahead.

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Tory leadership: Sunak frustrated government attempts to realise benefits of Brexit, Truss allies claim – UK politics live

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Latest updates: foreign secretary’s supporters accuse former chancellor of resisting changes to EU regulation as sixth hustings looms

Gordon Brown, the former Labour prime minister, has used an article in today’s Guardian to propose that the government should halt the increases in the energy price cap planned for later this year and next year and, if necessary, take energy companies into public ownership to ensure that they keep prices down.

Alongside the Lib Dem plan, with which it has some similarities (they also want a price cap freeze, and more money raised through a windfall tax), it is the most radical and ambitious proposal on the table to tackle the energy bills crisis.

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UK energy bills – six ways to reduce the impact of soaring prices

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Be it a loft insulation drive or a lower price cap, there are many ways to help – but action must be swift and extensive

The UK government has been urged to take further action to alleviate the impact of soaring energy prices, and there are a number of measures it could take.

Any rescue package would need to be swift and extensive to prevent households being plunged into poverty this winter as home energy prices surge. Ministers will also need to dig deep to prevent more businesses hit by rising energy costs from defaulting on loans and declaring themselves bankrupt.

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