Britain’s cap on domestic energy prices is expected to rise to more than 4 200 pounds a year in January, up 230% on the year before, a leading economic forecasting group said on Tuesday, deepening the cost of living crisis. The Bank of England warned last week that Britain was on course for a long recession, as unprecedented energy prices push inflation towards 13%.
“It is essential that the government use our predictions to spur on a review of the support package being offered to consumers,” Craig Lowrey, principal consultant at Cornwall Insight, said in a statement. Catastrophic increase Cornwall Insight’s estimate was revised higher following changes made to the way the cap is calculated by regulator Ofgem. Ofgem said the forecast for January should be viewed with caution due to volatile wholesale markets.