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Tuesday, July 03, 2018

Rising energy prices expected to worsen UK fuel poverty

Gap between cost of energy and what people can afford set to rise by 9% in 2018.

The depth of fuel poverty blighting Britain's poorest households is expected to worsen because of energy price rises this year, according to official forecasts.

The Labour party said it was a national disgrace that the government was failing to turn the tide on fuel poverty.

A key measure known as the average fuel poverty gap - between households' energy bills and what they can afford to pay - narrowed slightly in 2016.

Rising energy prices expected to worsen UK fuel poverty

But the Department for Business, Energy and Industrial Strategy forecasts that the gap will expand by 9%, up from £326 in 2016 to £357 in 2018.

All the big six energy suppliers, and many of the newer challenger firms, have recently raised prices, blaming an increase in wholesale costs. German supplier E.ON last week raised its prices for the second time this year.

The proportion of households living in fuel poverty in 2016 rose for the second year in a row to 11.1%, or around 2.55m homes.

Fuel-poor households are defined as those with above average energy costs where their income would fall below the official poverty line after paying to heat and light their home.

 

Read more at The Guardian.