Concerns in Cornwall as average energy bills jump by almost £700 a year
The regulator's limit is going up by over 50% because of soaring wholesale costs
There are concerns across Cornwall as it has been announced the average energy bill is set to rise by almost £700 a year.
Energy regulator Ofgem has announced a 54% rise in the energy price cap, the maximum amount per unit for power that suppliers can charge in Great Britain, amid soaring wholesale gas prices.
The rise will come into force from 1st April as the price cap on energy bills is updated for the next six months.
With the £693 increase, the average annual energy bill could come to around £2,000 for 22 million households, up from about £1,300.
The Bank of England has also raised its base rate of interest from 0.25% to 0.5% with its forecasts likely to show rampant inflation this spring.
Ofgem said the energy price cap rise is driven by a record rise in global gas prices
Daniel from Camborne is surviving on a kick-starter job and Universal Credit. He says it will be an even bigger struggle to make that stretch.
He told us: "Every little penny counts to the point where I'd go by in my day and my meals were 19p packets of noodles and such like that. So when you look at how much that is going to increase on just a weekly basis, how many meals is that going to cut me short on.
"It doesn't look stable in any way for people with disabilities and shared accommodations, that's just not going to work out well, especially when you look on top of that how much it costs to get housing these days, I can't even afford to move out on my own, let alone that extra charge now on electric."
Rishi Sunak confirms support for poorer households
Chancellor Rishi Sunak has announced the vast majority of households will receive £350 of support to remove the "sting" from the energy crisis.
It will be through council tax rebates for households in bands A to D and an upfront discount on bills.
He promised that all 28 million households in Britain would get a £200 up-front rebate on their energy bills from October.
The Government will fund this, but it wants the money back so will hike bills by £40 per year over the next five years from 2023 to recoup its cash. If all goes to plan, wholesale energy prices will drop so households can pay back what they owe, without a major rise in bills.
Mr Sunak also promised a £150 council tax rebate for homes in bands A to D, something he said would cover around 80% of homes in England. He also promised £144 million to councils to support vulnerable people.
No council tax discounts for second homes
St Austell and Newquay's MP, Steve Double, has welcomed the extra support from the Chancellor.
He said: “Today’s announcement by the Chancellor is excellent news for hard-pressed people across Cornwall who have been worrying about the cost of living increases, particularly our energy bills.”
“The measures announced by our Chancellor are a sensible and proportionate way of ensuring this support is delivered effectively, while also ensuring those who need it most are eligible for more assistance as required.”
“Particularly for Cornwall, I am always keen to ensure Government money is distributed fairly, and I was pleased to have a personal assurance from the Ministerial team that the council tax discounts will not be applied to second homes.”
'Parents will struggle to make ends meet'
But the charity Action for Children claims the help announced for families won’t be enough and fear they are going to see more children going hungry.
Imran Hussain, director of policy and campaigns at Action for Children, said: "Soaring energy prices are the latest battle for low-income families already locked in a permanent cost of living crisis. We welcome the government is taking action, but the proposals outlined today are poorly targeted.
"Just over 100 days ago, the families we help lost £1,000 a year in Universal Credit, and will now have nearly £700 a year added to their bills. The help announced for these families today won’t be enough. We’re going to see more children going hungry as parents struggle to make ends meet.
"The best way to help those most affected such as low-income families with children is through the benefits system, rather than council tax, which is measured on out-of-date property values, not on income."