Cost of living

Cost of living

Tory MP Kevin Hollinrake says energy crisis will lead to more people ‘on the streets’

Surging gas prices could send the cost of energy bills to £6,552 next year with inflation expected to peak at 18 per cent, according to two forecasts.

Consultancy firm Auxilione estimated that gas and electricity bills could hit £6,552 for the average household from April.

Analysts at leading investment bank Citigroup, meanwhile, predicted that inflation – driven primarily by soaring energy bills – could hit a staggering 18 per cent early next year.

Energy regulator Ofgem will on Friday make an announcement on the latest price cap rise, which will take effect in October.

Autumn’s expected rise to £3,554 would leave average household bills 80 per cent higher going into the colder months when energy use soars.

EDF managing director Philippe Commaret said that half of UK households could be in fuel poverty in January as a result of rocketing energy prices as he warned of a “dramatic and catastrophic winter”.

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Treasury told to reveal if it is preparing for Liz Truss’s crisis budget in scrutiny row

The Treasury is being urged to reveal whether it is preparing for Liz Truss’s “emergency budget”, in the growing row over whether the Tory leadership favourite is dodging scrutiny.

The likely next prime minister has signalled she will not ask an independent watchdog to give its verdict on the £30bn-plus package of tax cuts she plans within weeks of taking office.

Our deputy politics editor Rob Merrick reports:

Treasury told to reveal preparations for Liz Truss’s crisis budget in scrutiny row

Senior Tory says chancellor must help watchdog ‘publish independent forecast’ on economic impact of huge tax cuts

Matt Mathers23 August 2022 13:35

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Liz Truss economic policy ‘more Ted Heath than Margaret Thatcher’, IFS chief says

Liz Truss‘s economic policy resembles that of Ted Heath rather than Margaret Thatcher, the director of a leading think-tank has said.

The Tory frontrunner plans to cut taxes and grow the budget deficit in the face of high inflation – amid warnings it could drive prices even higher.

Our policy correspondent Jon Stone reports:

Liz Truss economic policy ‘more Ted Heath than Margaret Thatcher’, IFS says

Comparison is likely to irk Tory frontrunner who has modelled herself on Britain’s first woman prime minister

Matt Mathers23 August 2022 13:18

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What does the energy price cap mean for you?

You’ve probably heard and read lots about the energy price caps in recent months.

The price cap is due to rise again on Friday when Ofgem makes its latest announcement.

But what is it, and how does it affect individual households.

My colleague Joe Sommerlad takes a look:

What does the energy price cap mean for you?

Rising global gas prices causing dramatic increase to household bills in 2022

Matt Mathers23 August 2022 13:00

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Who gets the £400 energy rebate and winter fuel payment?

Households will start receiving money off their energy bills from October.

Vicky Shaw has a run-through of who gets what and when:

Who gets the £400 energy rebate and winter fuel payment?

Households will start receiving money off their energy bills from October

Matt Mathers23 August 2022 12:40

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All the cost of living help available and how to get the payment

Former chancellor Rishi Sunak announced a host of new measures after criticism the government was not doing enough to address economic hardship.

My colleague Zoe Tidman takes a look at what help is available:

All the cost of living help you may be entitled to and how to get the payments

Former chancellor Rishi Sunak announced a host of new measures after criticism the government was not doing enough to address economic hardship

Matt Mathers23 August 2022 11:50

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Energy price rises again to £6,552 -new forecast

A spike in gas prices on Monday has added close to £500 to the forecasted energy price cap next year – heaping further woe on families who would already struggle to keep the heating on.

Experts now expect that the energy price cap will be set at £6,552 in April, based on Monday’s gas price.

Prices soared as markets opened on Monday after Russia said it would run maintenance on a key gas pipeline that connects the country with Germany.

“The nervousness of the market appears to increase day by day as we edge closer to winter delivery, now just five weeks away, and no big positive news on the horizon,” Auxilione said.

“The planned outages in a week’s time have captured the attention of the market and are driving concerns further – as yesterday’s market activity demonstrated.”

Matt Mathers23 August 2022 11:48

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How to cope with the rise in prices

Millions of Britons are struggling as the price of everything soars amid rising energy prices and inflation. My colleague Kate Ng turns to financial experts for advice on how to deal with it all.

Read here piece here:

How to cope with the rising cost of living

Millions of Britons are struggling as the price of everything soars amid rising energy prices and inflation. Kate Ng turns to financial experts for advice on how to deal with it all

Matt Mathers23 August 2022 11:35

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Cost of living crisis would be worse if Putin went unchecked

The cost of living crisis would be even worse if Vladimir Putin’s war in Ukraine went unchecked and his aggression spread to the rest of Europe, a former foreign secretary has said.

Sir Malcolm Rifkind, who served as Sir John Major’s foreign secretary from 1995 to 1997, was asked how much longer the UK could continue to support Kyiv’s war effort amid sky-high energy bills and inflation.

More comments below:

Matt Mathers23 August 2022 11:17

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Cost of living scams: What to look out for and how to get help as fraudsters target relief payments

Dodgy texts, calls and emails are on the rise as UK economic outlook becomes ever bleaker, writes Joe Sommerlad.

Read Joe’s piece on which scams to look out for during the cost of living crisis here:

What cost of living scams to look out for and how to get help

Dodgy texts, calls and emails on the rise as UK economic outlook becomes ever bleaker

Matt Mathers23 August 2022 11:00

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UK facing ‘economic warfare’

The UK is facing “economic warfare” amid Russia’s invasion of Ukraine and rising energy prices, an MP has warned.

John Healy, the shadow defence secretary, spoke to LBC earlier. “There is undoubtedly a component that what we’re facing is not just a market failure and poor practice by the energy companies, but as part of the economic warfare that Russia has been waging on Europe,” he said.

“It’s no coincidence that in the year before they invaded Ukraine, they cut the supply of gas to Europe over those 12 months by half – forcing up prices, putting on pressure and it’s part of what military specialists would say [is] a form of hybrid warfare and aggression.”

Mr Healey added: “We are facing Russian aggression which extends into our economy, extends into the disinformation that sows division within our society – which sort of undermines our belief in our own country – and we’ve got to reinforce our resilience at home and reinforce our defences abroad.

“That’s why our armed forces are just so vital to this country at the moment.”

Matt Mathers23 August 2022 10:46

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