The average energy bill will soar by ANOTHER £800 in October: Another blow for hard-pressed families as Ofgem warns energy cap could rise another 50 PER CENT amid Britain's cost of living crisisStruggling Britons were today warned they face another near-50 per cent hike in energy prices in October - as Boris Johnson held a crisis Cabinet on the cost of living. Ofgem chief executive Jonathan Brearley revealed his latest estimate for the price cap as he gave evidence to MPs on the Business Committee. He said that although the figures were 'uncertain', the situation has deteriorated and the expectation for the new level was £2,800 for a typical family - compared to £1,972 at the moment. Before April it was just £1,277. Mr Brearley also admitted that there is a risk prices could go even higher if there is more disruption from the standoff with Russia. The grim message will heap pressure on the PM to announce more help for families struggling to get by as inflation spirals. A think-tank has sounded alarm that the mooted increase could nearly double the number of families suffering 'fuel stress' to 10million.
https://www.dailymail.co.uk/news/article-10848623/Government-tax-soars-12-year-year-50bn-April.html
Comments
Just seen the News and the Head of OFGEM has actually said it will be up to 12million Families in Fuel Poverty, where they are spending more than 10% of their disposable income on fuel (10million was just in England)
You would need a disposable income of £28k, to qualify.
Anyone with £28k left after tax, and paying their essential bills, may not be struggling that much, or consider themselves in any sort of poverty.
Although I am not sure what gross income you would require to net £28k after tax, and essential bills, mortgage etc, it would probably need to be around £50k.
However if you were on benefits, or reliant on a state pension only, this would represent a much higher percentage, and a much bigger problem.
A married couple whose only income was the state pension, would get around £14,800 gross, depending on their NI stamps.
My own council tax, and water rates come to just about £3,600.
So if I were in this position a £2,800 bill, as a percentage of a disposable income of £11,200, comes to 25%, and no doubt a struggle to make ends meet.
Probably impossible if I had a mortgage.
Whereas the above criteria may not represent a huge problem.
Just to be clear. what I think is meaningless is the bracketing together of people who may find the expected increase fairly easy to afford, with those who will find it impossible.
Technically, the definition of disposable income in the UK is your income after personal taxes have been deducted. However, the general population have come to regard their discretionary income as their disposable income. Discretionary income is when you take your monthly income after taxes and then subtract all your essential bills from it.
Do something. You know-govern. The clue is in the name-that's what Government should do.
Not divert attention with a public p1ssing contest with Scotland over Trans rights.
Do something about the millions of people hurtling towards penury. Or call a General Election.
Levelling-Up ...... that won't ever happen
I currently pay £297 per month.
The prices will be reduced in July.
They are saying that I will save £423 over the 12 months from July.
Still very high.
Early.
It's my way of getting revenge for my high energy bills.
So it seems they are expecting me to overpay until then.
Latest news - Ofgem announcement
On 25 May, Ofgem has announced the price cap will decrease from 1 July.
This adjustment doesn't require you to take any further action. We're currently writing to customers to update them on what this means for them.
Customers who pay via Budget Direct Debit are not required to take any action. At your next review, your Direct Debit will be adjusted to reflect any price changes, credits, or outstanding debt. We don't recommend adjusting your Direct Debit before your next payment review, as doing so might put you at risk of falling into debt.
We know things may be difficult at the moment, but you can depend on our support. If you're struggling to pay your energy bills, find advice and support in our help centre.
"My next review is in January.
So it seems they are expecting me to overpay until then."
They have no idea about what's about to hit them.
The figure I quoted above is just the saving on gas.
The saving on electricity is a further £110.
So the total is £533.
This obviously based on the same usage.
So they are saying that in the 12 months from July my bills should be
£1281 for electricity.
£1264 for gas.
That comes to a total of £2545.
This is £212 per month.
Dont know why they want to continue charging me nearly £300 per month.
I will tomorrow.