‘Two-thirds of families to be trapped in fuel poverty by January’

Two-thirds of all UK households will be trapped in fuel poverty by January with planned government support leaving even middle-income households struggling to pay their bills, recent research has claimed. 

According to a new study by the University of York, 18 million families, the equivalent of 45 million people, will be left trying to make ends meet after further predicted rises in the energy price cap in October and January. 

An estimated 86.4 per cent of pensioner couples and 90.4 per cent of lone parents with two or more children are expected to fall into fuel poverty, which is traditionally defined as when energy costs exceed 10 per cent of a household’s net income. 

The warning comes after revised forecasts from the consultancy Cornwall Insight last week that annual energy bills could top £4,200 from January. Just the week before they had predicted the energy price cap was on track to rise to £3,615. 

The new study also shows huge regional variation in the cost-of-living crisis. While 57.9 per cent of households in the south-east predicted to be struggling with energy bills by January, this proportion rises to 70.9 per cent in the West Midlands and 76.3 per cent in Northern Ireland. 

Figures released on Wednesday (17) showed that inflation soared to a 40-year high of 10.1 per cent– heaping more pain on households as the costs of food, energy and fuel continue to rise. 

Asda chairman Stuart Rose criticised the government– which will fund a £400 universal energy grant in October as well as further support targeted at the poorest families – for a “horrifying” lack of action over inflation. “It’s going to be painful for everybody,” he told BBC radio. 

“We have been very, very slow in recognising this train coming down the tunnel,” added the Tory peer. 

The Institute for Fiscal Studies also warned that “permanent tax cuts” promised by the Tory leadership candidates, Liz Truss and Rishi Sunak, could exacerbate pressures on the public purse. It suggested short-term government borrowing to support struggling households may be a necessary step for the next prime minister. 

The government has not proposed suspending the energy price cap rise, but it has announced an array of measures intended to help people pay their bills.