British households are facing a cost-of-living onslaught today as the energy price cap surges more than 50pc.
Average domestic energy bills will increase by £693 over the next year as a result of sharp rises in wholesale prices.
Analysis by the Resolution Foundation found this will double the number of English households suffering fuel poverty to 5m. A further 2.5m families will be at risk from “fuel stress” – spending at least a tenth of household budgets on energy bills – if the price cap jumps again in October as expected by official forecasters.
It comes days before a rise in National Insurance tax that will put a further squeeze on budgets, while soaring inflation is already pushing up consumer prices.
Overall, the average family will be £1,100 worse off over the next 12 months, according to the Resolution Foundation.
5 things to start your day
1) End of Covid spending spree unmasks a bleak reality for Britain’s finances State aid has fuelled UK growth, but the private sector is on its knees
2) Albania plans ‘new Hoover Dam’ to turn off Russian gas The dam will be the largest construction project in Albania since the fall of communism
3) Boris Johnson opens the door for a fracking revival The Prime Minister halts order to seal three fracking wells to ‘evaluate options’ amid energy crisis
4) Kremlin-linked firm puts UK delivery service up for sale Yandex, known as Russia’s Google, is already shutting down operations in Paris
5) Ban on Russian bank deposits over £50,000 is illegal, warn finance chiefs Bankers say proposal would break equality laws
What happened overnight
Asian shares were mostly lower Friday as a resurgence of Russian attacks dashed hopes for any quick end to the war in Ukraine.
The retreat followed a broad decline on Wall Street, which closed out its worst quarter since the pandemic broke out two years ago.
Japan’s benchmark Nikkei 225 slipped 0.7pc in morning trading to 27,618.27. Hong Kong’s Hang Seng shed 0.8pc, while the Shanghai Composite added 0.9pc.
Coming up today
- Corporate: Pennon (trading update)
- Economics: Manufacturing PMI (UK, US, EU); inflation (EU); non-farm payrolls, unemployment rate (US)