U.K. Energy Cost Surge Risks Leaving 8.5 Million in Fuel Poverty

(Bloomberg) -- As many as one in three U.K. households could be pushed into fuel poverty if energy bills soar further, a group of charities warns.

If the average energy bill rises as high as 3,000 pounds (about $4,000), that would leave 8.5 million British households unable to pay their bills, the End Fuel Poverty Coalition said in an emailed statement. Record-high energy prices this week risk worsening the U.K.'s cost-of-living crisis and driving up inflation even further. 

Europe had already seen a huge rise in wholesale gas prices as its economic rebound from the pandemic outpaced its thin gas storage. The problem has only worsened this past week due to fears over the supply of gas to Europe following Russia's invasion of Ukraine. Investec Bank Ltd. analyst Martin Young has said that the U.K. energy regulator's price cap could rise to that 3,000-pound level, which would be another 50% increase on top of April's hike. 

Energy price rises have pushed budgets, especially for older people, to a “breaking point, with many going without heating for weeks over the winter,” said Caroline Abrahams, charity director of Age U.K. “The Chancellor must do more to help and ensure that those on low and modest incomes can afford to stay warm without worrying sick about their bills.”

Read More: Britain's Big Gas Squeeze to Drag 10% Into Energy Poverty

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