Cost of living crisis: Households underestimate how much energy bills will rise, research shows |  UK News

Cost of living crisis: Households underestimate how much energy bills will rise, research shows | UK News

Most households underestimate the massive increases in energy prices expected in the coming months and some even believe they will fall, new research shows.

Families believe their household gas and electricity bills will rise by £487 from the beginning of October, despite experts predicting a rise of more than three times that amount, research commissioned by Uswitch has found.

The bill for an average household will rise from around £1,600 to more than £3,600, according to the latest forecasts.

Only around one in 13 people (8%) thought their bills would increase by more than £1,500, which is what experts predict.

More than a quarter of households said they did not know what is likely to happen to the price cap on energy bills, according to the survey.

Meanwhile, 12% said they think it will decrease this winter.

Uswitch’s director of regulation, Richard Neudegg, said: “With the summer holidays in full swing, it’s no surprise that so many people haven’t been privy to the news about price cap changes.”

He has called on the government to act quickly to provide more support to households, adding that households “desperately need to know that sufficient financial support will be provided”.

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Labor energy plan explained

The October price cap will be announced by energy regulator Ofgem on August 26.

Current plans to ease the burden of the surge were announced in May, when the peak price was expected to hit £2,800 in October. It is now believed to be £800 higher than October and could hit £5,000 in April.

In May, the government announced £400 per household, to be paid in six installments. He also promised support of up to £1,200 for the most vulnerable people.

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But Neudegg said the promised £66 a month over the winter would “barely touch the sides” of the expected increase.

As fears around the rising cost of living mount, pressure is mounting on the two Tory leadership candidates, Liz Truss and Rishi Sunak, to come up with detailed proposals.

Opinium researchers surveyed 2,000 adults across the UK online between July 19 and 22. They weighted the sample to be politically and nationally representative.

People were asked: “Ofgem is due to review the energy price cap again in August, to implement it in October. What do you think will happen to your Standard Variable Rate price in October after the review?”

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