Chancellor Nadhim Zahawi has acknowledged today’s 80 per cent price cap rise will cause “stress and anxiety” as campaigners urge the government to take action.
In a move that will concern millions of Brits, this morning it was announced by Ofgem the energy price cap will rise to £3,549 per year from October.
The rise will plunge millions of British households into fuel poverty this winter, and was branded “hideous” by consumer champion and campaigner Martin Lewis.
This comes as the war in Ukraine has contributed to rising costs for energy, with the UK stopping imports of Russian oil this week, putting pressure on the price for alternative sources of energy.
According to the Telegraph, chancellor Nadhim Zahawi said the announcement “will cause stress and anxiety for many people, but help is coming with £400 off energy bills for all, the second instalment of a £650 payment for vulnerable households, and £300 for all pensioners.”
“While Putin is driving up energy prices in revenge for our support of Ukraine’s brave struggle for freedom, I am working flat out to develop options for further support. This will mean the incoming Prime Minister can hit the ground running and deliver support to those who need it most, as soon as possible.”
Writing in City A.M. earlier this week, Nadhim Zahawi said there would be “ready-made options for the energy crisis” for the next prime minister.
Shadow chancellor Rachel Reeves called the rise “incredibly worrying and will strike fear in the heart of many families.”
“We cannot wait any longer to act. This is a national emergency”, she said, calling for prices to be immediately frozen.
Martin Lewis branded the rise “hideous but NOT a surprise”, adding that “in March I first said “the Oct price cap may be over £3,000″”.
The rise is typically £750/yr more than help measures in May were based on. The real shock is this announcement’s happened without firm new help in place”.