Home Business News Many Brits face ruin as Ukraine war to push energy bills up by 70% with food prices set to explode ‘even higher later this year’

Many Brits face ruin as Ukraine war to push energy bills up by 70% with food prices set to explode ‘even higher later this year’

18th May 22 1:32 pm

Millions of families could be forced to make even more impossible decisions later this year as “the economic situation is far worse than the government is prepared to admit,” a senior Tory has claimed.

The Chancellor Rishi Sunak must intervene to take action to properly tackle energy bills as families will be paying an extra £60 per month, and by October energy bills will explode when the price cap is reviewed.

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The price of energy is set to rise even higher in October when the price cap is next reviewed as the war in Ukraine will likely force higher gas and oil prices.

On Wednesday the Office of National Statistics (ONS) warned national inflation has risen to 9%, which is the highest rate in 40-years.

Analysis by the ONS also showed a grim reality that the bottom 10% of the families in the UK in terms of income will be hit with an inflation rate of 10.9%.

Energy bill have seen their fastest increase in 30-years as prices have shot up by 70% in the year to April which will force millions more into a fuel poverty.

Heidi Karjalainen from the Institute for Fiscal Studies (IFS) warned on Wednesday, “Continuing pressures, such as the war in Ukraine, are likely to push Ofgem’s October tariff cap, as well as other prices including food prices, even higher later this year.

“We are likely to be in a prolonged period during which poorer households are facing rates of inflation even higher than the headline figures would suggest.”

Those who rely on welfare payments have also been hit hard with a rise in costs as their benefits have risen by a mere 3.1% in April.

However the poorest households are somehow expected to budget on their gas and electricity which has risen by 11%, compared to 4% who have money the IFS added.

Senior MPs in the House of Commons are demanding that the Chancellor take action to help millions who cannot make ends meet.

Sir Bernard Jenkin who is a senior Conservative backbencher has said that “the economic situation is far worse than the government is prepared to admit.”

“The measures that need to be looked at are £20 uplift in universal credit, transferring the cost of energy green levies to the exchequer, abolishing VAT on domestic fuel, increasing the warm homes scheme, and increasing the pensioners’ fuel allowance.”

Shadow chancellor Rachel Reeves told BBC Breakfast, “Today in Parliament, Labour will be calling another vote and urging the Government to introduce an emergency budget because it is clear that the actions taken to date by the Government did not meet the scale of the challenge.

“Families and pensioners are really struggling right now and the Government must urgently come forward with additional measures to help people with this incredible increase now.”

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