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UK energy bills set to rise into winter amid record household debt
Prices are forecast to climb nearly 4% in October, with a further 9% increase expected at the January winter peak, while unpaid energy debt has reached record highs.
BBC Business reports that forecasts for UK gas prices are renewing pressure on households and policymakers, with energy prices expected to rise by nearly 4% for millions of households in October. The consultancy Cornwall Insight also predicts a further 9% increase at the peak of winter in January, citing ongoing volatility in the wholesale gas market linked to events in the Gulf region.
The outlet says the energy sector is warning that high prices may persist, with EDF suggesting bills will stay “stubbornly high” at their current level at least through the end of the decade. It also notes that the typical household’s dual-fuel bill is now 70% higher than at the start of 2021, which equates to roughly £600 more per year than pre-crisis levels, according to Energy UK.
BBC Business adds that the burden has translated into worsening payment stress. Ofgem reports unpaid energy debt of more than three months is at a record high, while suppliers estimate total unpaid bills and charges at about £6 billion, expected to rise to £7 billion by year end.
The report says Ofgem has proposed a debt relief scheme, and campaigners are urging the government to fund it. Charities and the industry also want ministers to introduce a discounted tariff for people most in need, based on benefits, health, and income.