It shows 18 million families, equivalent to 45 million people, will be left scrambling to make ends meet after further predicted increases in the energy price cap in October and January. An estimated 86.4% of retired couples are expected to fall into fuel poverty, traditionally defined as when energy costs exceed 10% of a household’s net income, and 90.4% of single parents with two or more children. The new study from the University of York also shows huge regional variation in the cost of living crisis, with 57.9% of households in the South East predicted to struggle with their energy bills by January, compared to 70.9% in the West Midlands and 76.3% in Northern Ireland. Over 76% of Northern Ireland households expected to be in fuel poverty in January 2023 The figures come after inflation soared to a 40-year high of 10.1% – weighing more on households as food, energy and fuel costs continue to rise. Asda chairman Stuart Rose criticized the government – which will fund a £400 universal energy grant in October as well as further support aimed at poorer families – for an “appalling” lack of action on inflation. “It will be painful for everyone,” he told BBC radio. “We have been very, very slow to recognize this train coming down the tunnel,” added the Tory peer. Archie Bland and Nimo Omer take you to the top stories and what they mean, free every weekday morning Privacy Notice: Newsletters may contain information about charities, online advertising and content sponsored by external parties. For more information, see our Privacy Policy. We use Google reCaptcha to protect our website and Google’s Privacy Policy and Terms of Service apply. The warning that 65.8% of all UK households will be in fuel poverty by January follows revised forecasts from consultancy Cornwall Insight last week that annual energy bills could top £4,200 from January . Just last week they had predicted that the energy price cap was going to rise to £3,615. UK fuel poverty expected to affect 90.4% of lone parents with two or more children in January 2023 Consumer champion Martin Lewis described the latest forecast as “tragic news” and urged the “zombie government” to come up with an immediate action plan to help households. Labor earlier this week announced plans to freeze the energy price cap at its current level, meaning expected rises in October and January will not go ahead, funded by an £8bn boosted tax on energy company profits. companies. The party had faced some criticism for not focusing exclusively on the poorest households, but Labor insiders suggested new analysis by the University of York showed “squeezed middle” families would also struggle to make ends meet. Shadow climate change and net zero secretary Ed Miliband said: “These shocking figures show the full scale of the national emergency that could unfold unless the Conservative government acts to freeze energy bills. “This is a crisis that will not only threaten the most vulnerable, but also middle-income families and retirees across the country who will be desperate for how to get through this winter. We simply cannot allow the British people to suffer in this way.” The government did not propose a freeze on energy price rises but announced a series of measures aimed at helping people pay their bills and Boris Johnson said he was confident his successor would deliver more help in the autumn, although neither candidate has yet drawn up a detailed plan. In an interview with the Financial Times earlier this month, Truss appeared to rule out lump-sum payments to support those most in need. “I would do things in a conservative way to reduce the tax burden, without handing out handouts,” he said when asked about energy bills. But within days the Tory leadership front-runner stressed she was offering people targeted support, with two of her key backers, Iain Duncan Smith and Thérèse Coffey, the current welfare secretary, said to be encouraging her to use Catholic faith as a means of getting help with energy bills to those most in need. Another Truss supporter, Simon Clarke, currently chief secretary to the Treasury, hinted that it may prevent the wealthy from receiving the £400 energy bill payment announced in May by Sunak, the then chancellor, as part of a £15bn energy bailout. . But she has pledged to push ahead with plans to reverse the rise in National Insurance as her primary way of helping people with the cost of living crisis, even though critics say it would disproportionately benefit the better-off and leave middle-income families struggling without additional support. In a leadership showdown in Belfast, Mr Sunack stepped up his attacks on Truss tax plans, warning millions faced a “very difficult time” this winter without immediate support. He said the Foreign Secretary would be guilty of “moral failure” if she did not focus on the most vulnerable. He added that guiding the country through the winter as energy prices soared was the “most important” short-term issue. “I think millions of people are at risk of a very difficult time and I’ve been very clear that my plan is to support them,” he said. But Truss insisted “taxes are too high and potentially stifling growth” as she promised an emergency budget to tackle the cost of living emergency.
