Another £12bn needed to keep UK energy bills support at same level, says IFS

The government needs to spend another £12bn to maintain the scale of support pledged to help families cope with the cost of living crisis as the energy prices continue to soar, according to analysis by the Institute for Fiscal Studies (IFS).

The economics thinktank said that the additional funding will be needed to achieve the £24bn package of aid announced in May, largely because the forecast increase in energy prices over the next year has jumped from 95% to 141%.

Paul Johnson, director of the IFS, said: “As prices of essentials including food, heating and fuel continues to rise, families on low-incomes are facing more uncertainty and pressures.

“The government is still playing catch up as inflation and the cost of energy continue to spiral upwards.

“Just achieving what they wanted to achieve back in May will cost an additional £12bn, and a package on that scale will still leave many households much worse off.”