The warning of the organization Which? it comes on the eve of Friday’s announcements of a new increase in the cap on the energy bills consumed by British households.
of Thanasis Gavou
The UK government should increase by 150% the horizontal subsidy of £400 per household to pay for inflated energy bills, warns consumer rights group Which?
The organization says that if the £400 is not increased to £1,000, then millions of British families will suffer unprecedented financial hardship.
The warning of the organization Which? comes on the eve of announcements on Friday about the new increase in the ceiling charges for the energy consumed by British households.
The new increase, which will take effect from October, is expected to raise a typical energy bill for an average household to between £2,800 and £3,600 a year, up from £1,971 today.
The agency says government aid to citizens must take into account revised upward estimates for the path of the charge cap, which will be further increased in January and April 2023.
The Resolution Foundation’s chief economist, Jonny Marshall, warned for his part that “a disaster is coming this winter”, noting that many families are at risk of being left without power because they will be unable to pay their bills.
As he characteristically said, “the new Prime Minister will have to imagine the unimaginable in terms of the policies needed for adequate support where it is most needed”.
The Resolution Foundation is calling on the Government to raise income tax by 1% to fund a new ‘social energy charge’ for low and middle income families.
Meanwhile, the UK’s biggest energy company, British Gas, has announced it will donate 10% of its profits to support its poorest customers “for the duration of the energy crisis”. This means that many households will receive a grant from the company ranging from £250 to £750.
It is noted that British Gas recorded an operating profit of £1.3 billion in the first half of the year, five times the profit of £262 million in the first half of last year.
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