The overnight surge in living costs, which pushes up the burden on Britons already facing high inflation, will see the average domestic energy bill increase by 693 pounds over the next year as a result of sharp rises in wholesale prices.
Overall, the average family will be 1,100 pounds worse off over the next 12 months, according to the Resolution Foundation. That’s in addition to the impact of soaring consumer price inflation, which hit 6.2 percent in February and is already at a three-decade high. Many have already found that a winter of rising prices has pushed them to the brink. Resolution estimated on Friday that the number of households in “fuel poverty”—defined as spending at least 10 percent of income on energy—has doubled to 5 million as a result of the price-cap hike.
“While no government can control the global factors pushing up the cost of everyday essentials, we will absolutely act wherever we can to mitigate rising costs,” Business Secretary Kwasi Kwarteng said in a statement.