Home Business News UK’s energy crises will see households paying more than 50% in April as the energy price cap will be updated

UK’s energy crises will see households paying more than 50% in April as the energy price cap will be updated

by LLB staff reporter
5th Jan 22 1:03 pm

The UK is in an energy crisis and prices are now affecting the economy as the upcoming price hike could lead to the country seeing a “2% rise in the cost of living.”

The head of an influential trade body is preparing to meet with government Ministers to warn them that the “whole economy” is at “risk.”

Emma Pinchbeck, the chief executive of Energy UK, warned BBC Radio 4’s Today programme, the spike in energy prices which is expected in April may lead to a 2% rise in the cost of living.

“This is a wholesale price risk, which is a whole-economy risk, it doesn’t just apply to the energy retailers or the sector,” she added.

“It’s quite likely that the Treasury themselves will have to take a view on what to do because this impacts not just the energy retailers, but the whole economy.

“Energy costs going up like this could be a 1% to 2% inflationary increase.”

Around the world there has been higher demand for gas supplies which has pushed prices up, and come April the UK will be facing a knock on effect for households.

Currently customers are protected by the energy price cap which keeps a limit on how much households are charged.

But in the energy price cap will be updated in April which could see more than a 50% increase in household bills.

Pinchbeck said that they have supplied as many ideas as possible to the government about what can be done to help household and businesses through the crisis.

“Bills are going up so much that there is a wholesale price risk which impacts the whole economy and that’s got to be a Government lead, as much as we can provide ideas,” she said.

One proposal was to improve the warm home discount where households can claim £140 off their energy bills if they are pensioners or on low incomes.

Another alternative could be to reduce green levies on energy bills.

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